The Bear’s Lair

The Bear’s Lair: Trump beats Biden or a Bushie.

Calvin Coolidge is not running. Nor is Lord Liverpool, though his ability to win four successive general elections in his own time suggests he could do so now, with only modest policy adjustments. When deciding whom to vote for, we must measure the available candidates, not against perfection, but against the opposition candidate and those […]

The Bear’s Lair: Philip II’s lessons for America

For the 244 years of the United States’ independent existence, few would have thought that the country had anything to learn from the ultimate Old World monarchical autocracy, Philip II’s Spain (he ruled 1556-98). Yet as politicians debate the merits of yet another public spending “stimulus” on top of a $3 trillion 2020 deficit, Philip […]

The Bear’s Lair: The emerging global one-party state

Twenty years ago, I was strongly in favor of globalization. I recognized the theoretical benefits it could bring and believed that poor countries could get richer while rich countries and their inhabitants did not get poorer. Alas, I favored a globalization that we did not get, and that maybe does not exist. Politics, as always, […]

The Bear’s Lair: The use and abuse of Supreme Courts

Every economic textbook trumpets the need for the rule of law and will tell you that one major reason for many Third World countries’ poverty is their uncertain legal system and bribery-susceptible judges. Yet to have a rule of law, we need a court system to enforce the law and general agreement on what the […]

The Bear’s Lair: Treason of the billionaires

This summer has seen a rush of billionaires and their companies donating to left-wing causes, or even giving extraordinary amounts of money to the Joe Biden campaign to defeat President Donald Trump. That is their right, of course. But I find it extraordinary that a majority of the world’s ultra-rich are supporting people whose policies […]

The Bear’s Lair: Springtime for Artificial Hitler

A Harvard Business School presentation on artificial intelligence by Professors Karim Lakhani and Marco Iansiti this week was fascinating but creepy. While the technology is empowering numerous new businesses, most of those businesses seem to be in China. Gradually, as the capabilities of artificial intelligence combined with Big Data sank in, I came to a […]

The Bear’s Lair: The rapid dynamism of free markets

In August 2020, under President Donald Trump, the U.S. unemployment rate fell in one month from 10.2% to 8.4%. Under President Barack Obama, the U.S. unemployment rate peaked at 10.0% in October 2009; it then took 27 months, until January 2012, to fall to 8.4%. That is not a commentary on the relative competence of […]

The Bear’s Lair: The Windmill Effect

 Between 1600 and 1795, the Netherlands did most things right to industrialize, yet the country’s industrialization occurred only after 1850. In the 17th century, the Netherlands made a massive investment in windmills, a technology clearly superior to water and animal power, but not readily adaptable for railroads or most industrial purposes. Then later, with […]

The Bear’s Lair: Are we in 1720?

Pessimists about the current state of the markets question whether we are in a stock market bubble, like 2000 or 1929. They are not thinking broadly enough. It is clear that when this nonsense bursts, the consequences of that bursting will be longer lasting and more fundamental than those of the burstings of 2000 or […]

The Bear’s Lair: California, China and Belarus

The world economy has come a very long way from the small-government, unregulated free-market model so celebrated by Adam Smith and other classical economists. Today, even in countries that claim to be committed to capitalism, taxes, monetary policy, regulations and state spending have produced huge distortions. To illustrate how huge, I thought I would compare […]