Economics

Addresses a key aspect of the left's "equality" agenda that muddies Americans' thinking on the issue and enables the left to turn people's good intentions against their genuine interests.

Piketty stirs up resentment against the producers and holders of wealth, and then says we need to tax it away to assuage that resentment. Instead, as an economist, he should be explaining why wealth is good and how, in the hands of those who know how to invest it profitably, it leads to prosperity for everyone involved in the economy.

True, new technologies make some jobs obsolete. But new technologies also make possible new careers. Moreover, because producers who employ new technologies manufacture more and better products at lower costs, their customers have money left to spend in expanded or entirely new industries.

Unfortunately, when some economists think of values as “subjective,” they assume that there is no objective standard for determining moral value; they assume that value is only a matter of personal opinion.

Whereas rational ethics holds that if you want the values on which your life and happiness depend, you must take the actions necessary to gain and keep those values; rational economics holds that if you want to trade value for value in the marketplace, you must first produce value with which to trade.

Jeff Bezos and Steve Jobs succeeded in large part because they passionately, selfishly loved what they were creating and marketing—books and music, respectively—and they developed innovative ways to deliver the products to consumers who love them too. Here’s to passions, profits, and the people who pursue them.

What makes it possible for individuals so passionate about something so specialized as importing, roasting, and selling coffee to be able to devote their lives to delivering the perfect cup? Such specialization is made possible by the enormous productive output of a relatively free economy and the complex division of labor such an economy supports.

Richard M. Salsman reviews Free Market Economics: An Introduction for the General Reader, by Steven Kates.

Jonathan Hoenig’s new film, Pit Trading 101, is a fascinating and inspiring look at a small group of highly ambitious capitalists who attended the University of Trading in the 1990s and went on to trade in the commodities pits of the Chicago Mercantile Exchange, where they allocated huge amounts of capital via split-second decision making.

Peter Thiel, who founded PayPal in 1999 and sold it to eBay for $1.5 billion in 2002, knows something about entrepreneurship. Among other things, he knows that entrepreneurs do not always need a college degree to succeed—for example, Steve Jobs, Bill Gates, Michael Dell, Ralph Lauren, and Mark Zuckerberg dropped…