Washington Monument Syndrome | Government manipulation tactics

Government 1B: Lesson 45 The "benefit principle" has been used to justify progressive income taxation. What is the benefit principle? Are there any problems with it? The benefit principle attempts to create taxation similar to market pricing, where individuals should be taxed in accordance with the benefits they receive from the government. While sounding nice … Continue reading Washington Monument Syndrome | Government manipulation tactics

Save the Trees or Save the Oceans | The Effects of Government Intervention

Government 1B: Lesson 40 Save the Trees or Save the Oceans The market and the environment have been hot topics for decades, and it is once again affecting our daily lives though not in a way you might have expected. Paper bags or plastic bags? Save the trees or save the ocean? This is the … Continue reading Save the Trees or Save the Oceans | The Effects of Government Intervention

Price levels and monetary inflation

Economics: Lesson 145 If there is no 'price level,' how could anyone prove that monetary inflation raises prices? The price level is a statistic the tells the price of goods and services. The price level often fluctuates depending on how much money is in the market. When the money supply increases, prices rise. You might … Continue reading Price levels and monetary inflation

An Example of the Broken Window Fallacy

Economics: Lesson 125 An example of the broken window fallacy as applied to a government intervention. The broken window fallacy is all about seeing the thing unseen. Government is often at fault for taking taxes and using them for things that are not necessary but are easily seen by the public. If taxpayers were able … Continue reading An Example of the Broken Window Fallacy