Some In-Depth Shutdown Analysis from out friends at FEE

Debt-Ceiling Crises: Imagined and Real             by DW MACKENZIE The government shutdown and impending debt ceiling “deadline” have led to near panic over possible default on the national debt. This imagined “default crisis” is a canard used for demagogic fearmongering. That said, the long-term federal financial issues are all too serious. If federal officials simply continue on with their current financial plans, the U.S. government could run into trouble in early November. Without a debt ceiling increase, the Treasury would be unable to meet some of its financial obligations. Treasury bills would take a hit in international markets. With …

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FEE: Fifty Ways to Leave Leviathan

            by MAX BORDERS, JEFFREY TUCKER State management of society is not only contrary to human liberty; it is also unworkable. It cannot achieve what it seeks to achieve, which is often all-round control of some sector of economic and social life. The attempt provokes a social backlash. People find loopholes and workarounds or just invent new ways to make progress possible. This is because people will not be caged. They struggle to be free and sometimes they succeed. Over the last century-plus, the Leviathan State has gained the upper hand, sometimes through big periods of upheaval but mostly …

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Cafe Hayek: On the Relatively Low Salaries of Relatively Essential Workers

            by DON BOUDREAUX Last night in my ECON 385 class (International Economic Policy) my students and I began discussing the effects of international trade on wages.  As a preface to this discussion I reviewed the basics of the economic theory of wage determination.  (Most of my students in this class are Global Studies majors; for many of them, this class is the first one in economics that they’ve ever taken.)  That theory, in a phrase, predicts that workers; pay is determined by the value of the “marginal” worker’s output. Among other facts, this theory clearly explains that we in …

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