Take that money back out of the mattress!

Due to a forward-happy coworker, I get a great cross section of economic insights on a daily basis. Today, a venerable economist I admire reassured his friends that the banking industry is solid and the vast majority of banks are solvent so no need to fear massive bank runs! He also recommends the following article by George Kaufman to assuage any remaining fears.

Human [In] Action

Human Action is Ludwig von Mises's magnum opus which at its briefest can be summarized as the following:

1. An uneasiness or state of dissatisfaction with the status quo
2. A mental image of a more satisfactory state
3. The expectation that action will bring about a more satisfactory state

All three must be present for action to occur.

"The incentive that impels a man to act is always some uneasiness." Mises p. 13

Well there sure is plenty of uneasiness to go around these days, but sometimes the right action is inaction. So maybe the peeps in government can imagine a more satisfactory state of affairs, but how certain are they that their collective action will bring about a more satisfactory result? What's the government track record on bailouts? Unfortunately, it's not so clear cut. The failures are hidden in indirect and unintended consequences. It makes me sick to my stomach that they would feel comfortable taking such a huge gamble on our country's future.

On a related note, enjoy this human interest piece on how uneasy/depressing the current Wall Street situation is and how everyday Joe Schmoes are coping.

Outta work? Move to Texas!

According to BizJournals.com, Texas is home to four of the top ten growing job markets.

• #1 Houston
• #2 Austin
• #3 Dallas/Fort Worth
• #6 San Antonio

Add in the relative low cost of living and friendly people and you have quite the compelling case to move to Texas. My one major complaint about Texas and my primary impetus for my hasty retreat is the provincial worldview of most Texans. Everything revolves around Texas. The Dallas Morning News and Houston Chronicle amongst other Texas publications has but only the briefest of AP blurbs on world news and Texans couldn't care less. As long as you don't drink too much of the koolaid, it's a nice place to live.

Who's got your back!?

For thousands of years, man's next of kin served as his motivation and his support in times of need. Modern times have diluted the importance of families, decreased the number of children, and enabled families to keep in touch over vast distances. People have spread out and families are less important to our self identities as well as our everyday lives.

I heard John Goodman of the National Center for Policy Analysis allege yesterday that the current magnitude of risk to the individual in the modern economy has to do with the decline of the family as a viable social safety net. Goodman also alleged that conservatives have made two mistakes responding to this problem. First, Republicans thought we could go back to strengthening families and they could once again fulfill their traditional supporting role in society. Second, conservatives and libertarians both have tried to scrap the welfare state altogether. Neither option is practical. Society needs an institutional safety net.

If we focus on individual empowerment and market forces in our social safety net policies, I have faith that people would step up to the plate. For instance, health savings accounts (HSAs) which were actually pioneered by said Goodman provide an excellent example of a solid market based reform. If we could move away from the bulk buying of health insurance policies, individuals could buy the policies appropriate to them and prices would be driven down by demand. But if pressed, I would still want friends and family to be my net than the monolithic government. How people can have such blind faith and trust in such a bureaucratic behemoth is beyond me.

Postmodernism I can dig

http://www.designobserver.com/

I heart old people

Last night, I gave a presentation on the importance of free markets in the development of South Africa. It was to fifty senior citizens at my grandparents' "active" living community. It was so much fun! My grandmother thinks I did well because so many people come in and talk down to them just because they are old and I just talked to them normally. First of all, it's a shame people would disrespect their elders like that. Secondly, these people are fascinating! I met a Jewish man who escaped the Nazis in Holland. A man who designed the machine that prints U.S. currency. Women who have travelled the globe and had the most insightful questions. It was such a pleasure to meet them all.

And it is always a pleasure to share my passion about free markets. This article by Jasson Urbach of the Free Market Foundation in South Africa pretty much sums up how I feel. He makes the case for private enterprise and long-term growth based on the foundations of personal and economic freedoms as the necessary elements for the future wealth and health of Zimbabwe.

So Texan it hurts

I haven't really followed Senator John Cornyn's politics since I left Texas, but I think he may deserve to be re-elected based solely on how he oozes Texan in his campaign ads. Check it out here.