INESS

Economists have been fascinated by the question of the origins of prosperity since the very beginning of their discipline. Today, we know much more about it than Adam Smith did 250 years ago when he wrote The Wealth of Nations. In the mid-20th century, economist Robert Solow developed a model explaining economic growth through capital accumulation and population growth.

I recently attended a discussion on Europe’s competitiveness. There was unanimous agreement that we are lagging behind in all applied technologies—perhaps with the sole exception of the pharmaceutical industry. The reflexive response from the participants was: “We’ve created a fund for that.” Too few startups? Create a startup fund.Weak AI performance? An AI innovation fund!

“Competition is a discovery procedure that enables us to adapt to new circumstances. It is through further competition, not through agreement, that we gradually increase our efficiency.” This statement by economist F.A. Hayek best captures the essence of competition. Competition constantly separates the efficient from the inefficient. The invisible hand of the market is, in fact, the visible hand of the customer.

The Minister of Education has announced his intention to introduce compulsory pre-school education for children aged three in Slovakia. The Ministry has published only one press release to defend this blanket and mandatory measure. It contains a number of inaccurate claims that do not stand up to critical debate. In this text, I will describe three reasons why the proposed expansion of compulsory school attendance is the wrong public policy.

The answer is Solomonic – we should be asking a different question. Most people have a correct, rough idea that healthcare is not free and that someone, somewhere, somehow pays for it. Some people are even aware of health insurance contributions, and the most knowledgeable among them even know how much these contributions are in relation to their salary.

Slovakia’s response to the tariff threat? The Prime Minister and the Minister of Economy have begun saying they want to redirect EU funds to help companies affected by US tariffs. We do not yet know exactly what this crisis will look like—but we already know the solution: European money. Journalists are asking us whether this is a good or a bad decision. You might be surprised, but I do not have an answer.

INESS once again organized the popular conference in cooperation with the Austrian Economics Center as part of the international conference network Free Market Road Show. On May 14, 2025 we were honoured to welcome both local and international speakers as well as almost 50 guests in the hall of the Devín Hotel in Bratislava. The topic was Targeted energy aid to households, how it should be set up and how energy poverty should be defined.

The term “wage” and its precise definition are crucial in public debates about labor markets, taxation, and social insurance. Wages also serve as a key indicator in international comparisons, guiding investors in evaluating where to locate their operations. However, confusion often arises from the distinction between gross wages and the arbitrary separation of “employee-paid” and “employer-paid” taxes and contributions.

One of the quickest and easiest ways to bring health services closer to consumers is to extend the ability to sell selected over-the-counter (OTC) medications in retail outlets while expanding the competencies of pharmacies. In terms of the openness of OTC medication sales, there are no uniform rules across Europe. About half of European countries allow OTC medicines to be sold outside pharmacies under various conditions.

The illusory truth effect is a psychological phenomenon describing the tendency to believe false information to be correct after repeated exposure. One example I can think of in Slovakia is the statement about \"cherry-picking\" in the hospital sector. Lower-tier hospitals cherry-pick the easy and profitable patients and send the rest to the larger state hospitals, which then make economic losses on them.