Richard W. Rahn

Compulsory insurance drives countries toward socialism

Venezuela is the latest global disaster caused by socialism. Over the last couple of hundred years, virtually every variety of socialism has been tried -- from communism to national socialism (Nazism) and fascism, to various varieties of "democratic socialism" -- with one common characteristic -- they all failed.

August 7, 2017

Innovation killed by politicians

Which government agency has done the most to destroy innovation? The American Founders tried to create an environment to foster innovation, because they understood new inventions would increase the well-being of the citizens. And that is the reason the Constitution enabled Congress to create patents of limited duration.

July 31, 2017

Crony capitalism disrupts the free market

For the past decade, a strange migration of a couple of thousand people from all over the world to Las Vegas takes place -- in the middle of July. They come -- at least most -- not to gamble and certainly not for the weather where the normal daytime temperature is a 100-plus degrees, but to participate in an event called FreedomFest.

July 24, 2017

American legal protections beginning to disappear

Do you mainly fear government or feel protected by it? The American Founders wrote a Constitution and designed a system of government that sharply limited the powers of the state --because they understood that the greatest danger to the liberty of the people was the necessary evil of government.

July 17, 2017

Economic forecasts are notoriously inaccurate

The Congressional Budget Office (CBO) projected that 21 million people would be enrolled in the Obamacare insurance exchanges by 2016, back when the bill was voted on in 2010. The actual number turned out to be about 10 million -- the projection being off by more than 100 percent.

July 10, 2017

Anti-liberty lobby must be stopped

Why do so many propose policies that undermine the never-ending quest to create a government that ensures liberty and protects person and property, as envisioned by the American Founders? Is it out of a desire for political power or ignorance of the consequences of their proposals?

July 3, 2017

Tax reform requires looking at government revenues

There is an old adage that entrepreneurs often find to be true, and that is that things take three times as long and cost three times as you much as you thought. The Republicans claim they are going to get tax reform done this year -- but this is not going to happen unless they do two necessary things.

June 26, 2017

Digital funds methods blocked by government

If mankind can figure out how to give everyone instant communication and all the world's knowledge via the smartphone, why are we not smart enough to figure out equally convenient, quick, low-cost and secure ways of paying for goods and services to everyone on the planet? Actually, we are.

June 19, 2017

Money laundering laws also harm the innocent

Do you want your relatives, friends, business competitors and government bureaucrats to know precisely how much wealth you have, in what form, and how you spend all of your money?

June 12, 2017

Climate change lobby are the real deniers

No one knows what is going to happen 100 years from now -- what problems human beings will face and what advances they'll make. Are you willing to double your electrical bill -- to European rates -- to reduce global temperatures by two-tenths of 1 degree 100 years from now?

June 5, 2017

Government spending effectiveness measured by accomplishment

Which portion of government spending provides little or no value? The president just released his budget proposal, and the predictable chorus of complaints immediately began from those who want more spending for "whatever."

May 29, 2017

Taxes cause population to leave

It is hard to succeed if everyone is leaving. Some of the former communist countries are suffering from a population death spiral, with double-digit population declines over the last 25 years, as can be seen in the enclosed table.

May 22, 2017

European economic system weaker than freer model

Despite the attempts to unify Europe into an economic and partial political whole over the past 70 years, the grand experiment is unraveling, and it increasingly looks like the Humpty Dumpty we call Europe cannot be put back together again. Parts of Europe are enjoying unparalleled freedom and prosperity, but other parts are sinking both economically and politically. What explains the growing divergence?

May 15, 2017

South Korea has undergone an economic miracle

By the time you read this, South Korea will have just elected a new president. There will be a peaceful transfer of power, coming after the previous president was impeached for corruption, but all done in proper democratic way. Few would have bet after the end of the Korean War, more than 60 years ago, that South Korea would now be a rich, developed, democratic country.

May 8, 2017

Tax cuts stimulate growth

If you were really hungry and given the choice of half of an eight-inch pizza or a third of a twelve-inch pizza, which would you choose? Already, the normal group of know-nothings among the political class and the press are proclaiming that President Trump's proposed reduction in the corporate tax rate will only benefit the rich. The safe bet is all those folks are wrong, once again.

May 1, 2017

Free speech under attack at liberal universities

Columbia University, from which I have a degree, has set aside rooms where straight white males -- like me -- are told they are unwelcome. How should I respond to their annual fund drives?

April 24, 2017

Price system will help the economy

Kinder and gentler governments use market-based price incentives and less coercion. But all too many government officials forget about the superiority of the price system, and resort to the threat of or actual violence to get the people to do what they want. Business people use the price system to attract customers with lower prices and good employees by offering higher wages (the price of work) rather than coercion.

April 17, 2017

Congress’ failure is its own fault

The administrative state began in earnest 130 years ago with the creation of the Interstate Commerce Commission in 1883, which was a major power giveaway by Congress to an independent agency.

April 10, 2017

World War I centennial shows need for thoughts before foolish actions

April 6 marks the 100th anniversary of the U.S. entry into World War I -- a war that claimed the lives of about 38 million people. It is correctly known as the "war about nothing," so why was it fought? The United States entered the war near the end, after much of Europe had been bled into exhaustion. Relatively speaking, U.S. deaths were few, about 118,000 from all causes, but a great tragedy for each of the families that suffered a loss (see enclosed chart).

April 3, 2017

Tax reform requires the right solution

President Trump has said he is going to move on to tax reform after the debacle with Obamacare repeal. Is there any reason that we can expect greater success with the tax reform effort? I argue no, unless the rules in the House and Senate are modified, and those in Congress, whose brains are connected enough to distinguish between tax rates and tax revenues, take control.

March 27, 2017