Slovakia’s example is emblematic of how a government trying to patch up fiscal loopholes turns to targeting incomes of the most vulnerable, using their limited means to solve societal problems. From the government’s perspective, this is often the easiest way to procure the necessary funding.
At the beginning of his speech, CEPOS President attacked the popular myth of Denmark being rich thanks to the welfare state. As he demonstrated on number of charts, Denmark was first rich, and only then could afford the welfare state.
Slovakia is experiencing situation common to many European economies. The price of electric energy on the market is falling, so is the overall consumption of electricity. And yet, the final price for consumers, especially in the industrial sector, remains high.
This is the sad history of price regulation of wages, venerated by the politicians, voters but also various organizations trying to help minorities. Although its current defenders do not have the same reasons as its supporters from the previous century, their agendas, unfortunately, still bring the same consequences.
The first task an economist has to master is to explain to people that there is such a thing as an economic problem. That is because people are more concerned with everyday emotionalism creeping into their lives by means of having to deal with another type of a problem that we could call an ‘engineering’ one.
Riding on the wave of historical fear, Slovak government quickly came up with a new protective law. In general, it forbids any agricultural landowner to sell land (2000 square meters and more) freely to just anyone. The willing seller has to actively search for an interested local farmer and offer him the land for “usual” price first.
The invisible hand is actually made of billions of very visible hands which put the products into shopping carts, receive payments, or shake other hands to complete a contract. The market is efficient because it is the only real “social” element of the arrangement of the society.
INESS organized a traditional summer Annual Sean Gabb lecture on Wednesday, August 12, 2015. Dr. Sean Gabb is the Director of the Libertarian Alliance (United Kingdom) and one of the most renowned advocates of freedom and individual liberty in Europe.
On July 30, 2015, INESS organized an event commemorating Milton Friedman. One of the special guests was Petr Barton of IREF, a Czech economist who spent a part of his professional carrier working at the University of Chicago and knew Milton Friedman in person.