Britain got the Industrial Revolution largely because of good policy (deo volente, there is a book in my future about this.) Now those good policies have been reversed. Savings are discouraged, the short-term and financial juggling are benefited over the long-term, industrial enterprise is hampered while sloth is subsidized and surplus capital is seized randomly […]

The Forces of Evil, human and supernatural, look like doing very well out of the coronavirus epidemic. From the supernatural side, deaths from the disease and the misery from the economic disruption look likely to provide triumphs. From the human side, government budgets are yet more unbalanced, bringing global bankruptcy several years closer and increasing […]

Boeing (NYSE:BA) and the airlines are currently in negotiations with the Trump administration for a bailout, with taxpayers expected to replace capital that those companies had previously eliminated through stock buybacks. If they get money without being forced through bankruptcy, this will become a pattern in each business cycle because it is so beneficial to […]

At the end of the 1983 movie “Trading Places,” the Duke brothers’ solid, long-established commodities business has been bankrupted in the orange juice pits by the insider-trading young sleazebags Winthorpe and Valentine, and the Dukes realize to their horror that trading has closed and the screens are dead. “Turn them back on” they cry feebly […]

Maynard Keynes, as a good left-liberal, was a political admirer of an earlier Cambridge alumnus Oliver Cromwell, and certainly regarded himself as part of the “Roundhead” tradition. Yet it is becoming increasingly apparent that, just as Cromwell’s virtues and policies pointed Britain on the road to the Industrial Revolution, so the vices and profligacies inspired […]

Jack Welch, former GE Chairman (1981-2000) who died last week, was named “Manager of the Century” by Fortune magazine in 1999. Twenty years later, we can see clearly that the Manager of the 20th century was not Welch but Alfred P. Sloan, CEO and then Chairman of General Motors (1920-1963). Welch’s main achievement was destroying […]

President Donald Trump last week pardoned Mike Milken, the effective originator of the junk bond market, who had been sentenced to 10 years in jail in 1990 for mysterious securities infractions. While I have considerable sympathy for Milken himself (not that he needs it, being worth $3.8 billion) I thought it worth performing the thought-experiment: […]

The fancy-college-educated left take great satisfaction in proclaiming that robots will soon threaten blue-collar jobs, while skills requiring higher education will be immune from competition driven by artificial intelligence (AI). This is surely incorrect. Robots/AI can in principle reproduce any predictable process, whether mechanical or intellectual. They cannot reproduce unexpected movement, leaps of imagination or […]

If you had bought South Sea Company shares 300 years ago today, on February 17, 1720, you would have paid the inflated price of about £175 per share. If you had sold those shares at any time before the end of September 1720, you would have made a fine profit, more than five times your […]

On July 6, 1988 European Commission President Jacques Delors propounded the hope that “Ten years hence, 80% of our economic legislation, and perhaps even our fiscal and social legislation as well, will be of Community origin.” The EU has not lost this ambition; this week Michel Barnier, the EU’s chief Brexit negotiator, attempted to prevent […]