Commentary Since the turn of the century, rates of attention deficit hyperactivity disorder (ADHD) have skyrocketed. One in ten American kids currently suffer from the condition. A chronic, debilitating illness, ADHD is a neurodevelopmental disorder that affects people’s behavior. It negatively affects a child’s academic achievements and is a considerable barrier to successful socialization. Since 2019, ADHD has exploded on social media platforms. Millions of…
Why Keynesian Economics Is Destined To Fail
Commentary My colleague, Doug Kass, penned an interesting note suggesting “Keynesian Economics” will fail. To wit: “At the core of the Keynesian theory is that the coordinated monetary and fiscal policies can stabilize economic output, inflation, and unemployment over the business cycle. As noted above, there are exogenous forces at work in this cycle which…
The Recession That’s Around the Corner
Commentary Over the past two or so years, our economy has been far from “normal.” The pandemic wreaked havoc on a bustling economy seemingly overnight and quickly ignited a recession in all of the G20 countries. Despite that, in 2020, the demand for housing was insatiable, which caused huge jumps in home prices, a stark…
Risks Accumulate for China Investors, Including Harvard
News Analysis Risk is accumulating for China investors, with private equity in particular trouble. Harvard University, one of the world’s top PE investors, with an endowment of $53.2 billion, recently showed a crack in its veneer on China. “In a sign of a potential pullback,” according to Bloomberg News, “Harvard University’s endowment is considering tapering…
The Ukraine War Shows Nukes Mean Safety from US-Led Regime Change
Commentary Some journalists like Steve Portnoy of CBS seem unable to grasp that escalations that might lead to nuclear war are a bad thing. The journalist seemed incredulous last week when asking White House spokeswoman Jen Psaki why the United States has not started a full-on war with Moscow. Psaki’s position—with which any reasonable person could agree—was…
The Failure of Central Banking: Quantitative Tightening
Commentary For every action, there is an equal and opposite reaction. – Newton’s third law of motion When central banks enacted their asset purchase (QE) programs and started to create the most preposterous asset market bubble in history, it was obvious that there will be a point, when they need to start selling assets from their…
We Still Haven’t Reached the Inflation Finale
Commentary Inflations have an inbuilt mechanism that works to burn them out. Government (including the central bank) can thwart the mechanism if they resort to further monetary injections of sufficient power. Hence inflations can run for a long time and in virulent form. This occurs where the money issuers see a net benefit from making…
Instead of War, Russia, Ukraine and Their Allies Should Try the Free Market
Commentary The war in Ukraine has generated commentary from a wide variety of observers in many fields. But economic science is the only field that can provide lasting solutions. And economics delivers the same time-honored solution: the free-market economy is the only way to durable peace between Russia and Ukraine. The immediate goal is to…
Is the United States Headed Towards Stagflation?
Commentary “We now have the worst of both worlds—not just inflation on the one side or stagnation on the other, but both of them together. We have a sort of ‘stagflation’ situation. And history, in modern terms, is indeed being made.” – Iain Macleod (1965) Stagflation was a new phenomenon in 1965, but now it…
Investing in the Metaverse
Commentary Young people feel attraction to the metaverse that older folks cannot understand. Some young enthusiasts have even bought property in that entirely imaginary land—as an investment, they say. At first blush, this practice seems outlandish, but on reflection, metaverse investments are not that much different than other investments, hardly as revolutionary as the young…
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