For more than three decades, the Federal Reserve has steadily expanded its role in the American economy. From a relatively narrow mandate as a lender of last resort to commercial banks, to inflation and employment targeting, it now operates as a systemic backstop for entire financial markets, allocating credit, supporting asset prices, and shaping macroeconomic policy in ways few Americans fully understand. While defenders of the Fed frame these developments as pragmatic responses to crises, a broader historical lens, especially Robert Higgs’s “Ratchet Effect” theory, suggests a more...

As the U.S. Congress continues to ignore the need for real fiscal discipline, kicking the can down the road again with yet another continuing resolution (CR), it is worth revisiting what two of the greats of the Austrian School had to say regarding the question of the national debt. Drawing on the writings of both Ludwig von Mises and Murray Rothbard, one finds the case against the national debt rests on economic, moral, and political arguments. Mises and Rothbard emphasize that government borrowing is a form of intervention that distorts the natural allocation of capital. In Human Action,...

On April 2, 2025, President Donald Trump stood in the White House Rose Garden to declare “Liberation Day”—a sweeping new tariff initiative aimed at reducing the U.S. trade deficit and revitalizing domestic manufacturing. The policy introduces a 10% blanket tariff on all imports starting April 5, followed by a second wave of “reciprocal tariffs” targeting sixty countries as of April 9. These include China (34%), the European Union (20%), Taiwan (32%), and South Korea (25%). Canada and Mexico are exempt from the second wave, but existing tariffs on autos and steel remain in place. The White...

In a recent conversation with the Libertarian Institute’s Keith Knight, we broke down a 2012 article by everyone’s least favorite economist, the former New York Times pundit Paul Krugman. In it, Krugman makes all the familiar and mistaken arguments about why we needn’t worry about high levels of government borrowing. From “the government doesn’t need to actually pay it back” to “we owe it to ourselves,” Krugman couldn’t be more confident in his wrong-headedness. Krugman’s arguments are fundamentally flawed because they mischaracterize the nature of government debt, ignore the distortive...