Search results

1 – 10 of over 2000
Article
Publication date: 1 February 2004

Roy Whitehead and Walter Block

In the aftermath of the Enron scandal, the critics of free enterprise have blamed this system for inflated and out of control executive salaries, particularly those of the…

Abstract

In the aftermath of the Enron scandal, the critics of free enterprise have blamed this system for inflated and out of control executive salaries, particularly those of the chief executive officer (CEO). The present paper defends the marketplace against these charges. In section I we argue that the market has passed the Enron test with flying colors. Section II gives the background of the financial situation relating to CEO salaries. Sections III and IV are devoted to, respectively, the tax court and the appellate court; section V looks at the reaction of the former to the latter; and in section VI we defend the “independent investor” test. We look at this issue from a political economic perspective in section VII and conclude in section VIII.

Details

Managerial Finance, vol. 30 no. 2
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 1 March 2004

Walter Block

In order to answer this question, it will first be necessary to distinguish between political and economic correctness on the one hand, and then between Austrian and…

Abstract

In order to answer this question, it will first be necessary to distinguish between political and economic correctness on the one hand, and then between Austrian and mainstream economics on the other.

Details

Humanomics, vol. 20 no. 3
Type: Research Article
ISSN: 0828-8666

Article
Publication date: 1 March 2002

Jason Evans and Walter Block

States that labour unions are widely respected institutions in modern society. Argues that this reputation in unearned insofar as these organizations are the only ones…

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Abstract

States that labour unions are widely respected institutions in modern society. Argues that this reputation in unearned insofar as these organizations are the only ones, besides that Government, which have not only a de facto warrant to initiate violence against innocent people (e.g. scabs) but a de jure one as well (right to strike). Suggests that in a socieity characterized by economic freedom, organized labour as presently constituted would be banned outright.

Details

Cross Cultural Management: An International Journal, vol. 9 no. 1
Type: Research Article
ISSN: 1352-7606

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Article
Publication date: 1 February 2000

Walter Block

Some economic commentators claim that inequality of wealth or income reduces economic development and growth of GDP. But this is counterintuitive, since economic…

Abstract

Some economic commentators claim that inequality of wealth or income reduces economic development and growth of GDP. But this is counterintuitive, since economic breakthroughs usually occur by dint of great effort, or discovery, or invention, which brings great wealth to those responsible (think Bill Gates). Nor is this thesis supported by a proper interpretation of the facts of the matter, despite the contentions of several authors in this regard. Torsten Persson and Guido Tabellini (1994) (hence, PT) have an interesting thesis. It is that inequality is harmful for economic growth. That is, ceteris paribus, the more equal is the income or wealth distribution, the better are a country's prospects for economic development.

Details

Humanomics, vol. 16 no. 2
Type: Research Article
ISSN: 0828-8666

Article
Publication date: 18 May 2012

Walter E. Block

The purpose of this paper is to shed critical light on micro‐finance.

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Abstract

Purpose

The purpose of this paper is to shed critical light on micro‐finance.

Design/methodology/approach

This scheme is managed from an economic perspective.

Findings

Micro‐finance comes to us as a left wing attack on the free enterprise system; as such, it ought to be opposed by all freedom lovers, at least in its present format. Other baggage weighing it down is, if not absolute fraud, then, what might well be considered at least serious chicanery. A further criticism is the cult‐like behavior now surrounding it. However, is micro‐finance per se necessarily fraudulent? Can it only be favored by critics of laissez faire capitalism? What of micro‐finance shorn of all such encumbrances? Should it then be supported? No. Even the Platonic Ideal of micro‐finance has serious difficulties. This claim is a matter of prudential judgment, not praxeology. But, even a pure‐as‐the‐driven‐snow variety of this scheme still violates the economic concepts of specialization and division of labor, an appreciation of the infant industry fallacy, and several other basic building blocks of the dismal science. There are other better ways to “cure poverty” than this misbegotten scheme. This one, paradoxically, exacerbates impoverishment by placing investment resources in hands less capable of making it grow than would otherwise be the case.

Practical implications

It would be unwise to invest in or support this scheme.

Social implications

Society should instead rely upon free enterprise banking, the occupy movement to the contrary notwithstanding.

Originality/value

It takes a minority position on this very popular institution.

Details

Humanomics, vol. 28 no. 2
Type: Research Article
ISSN: 0828-8666

Keywords

Article
Publication date: 19 February 2018

Laura Davidson and Walter E. Block

The purpose of this paper is to correct Rozeff (2010). He contends that fractional-reserve banking is legitimate and efficacious. The authors demonstrate that it is not.

Abstract

Purpose

The purpose of this paper is to correct Rozeff (2010). He contends that fractional-reserve banking is legitimate and efficacious. The authors demonstrate that it is not.

Design/methodology/approach

The design of this paper is to quote widely from Rozeff (2010) and then to expose his errors of analysis.

Findings

The authors demonstrate that fractional-reserve banking is neither legitimate nor efficacious.

Originality/value

Money is the lifeblood of the economy. If so, then banking is the marrow of the economy, since it is from that sector that money arises in the first place. It is crucially important, then, that the monetary system be based on sound principles. Fractional-reserve banking is a violation of these sound principles. Therefore, it is valuable to demonstrate that this is indeed the case.

Details

Journal of Economic and Administrative Sciences, vol. 34 no. 2
Type: Research Article
ISSN: 1026-4116

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Article
Publication date: 31 January 2020

Alan G. Futerman and Walter E. Block

This study aims to offer a critique of the theory of the deterioration in terms of trade, developed by Raúl Prebisch and Hans Singer.

Abstract

Purpose

This study aims to offer a critique of the theory of the deterioration in terms of trade, developed by Raúl Prebisch and Hans Singer.

Design/methodology/approach

As an example of the theory’s shortcomings, the case of Argentina’s import substitution model is analyzed.

Findings

This study demonstrates how a misunderstanding of the influence of price variability in international trade may lead to the mistaken conclusion that protectionist measures must be enforced to achieve growth and prosperity.

Originality/value

This is the first study that criticizes the Prebisch-Singer theory of the deterioration in the terms of trade from an Austrian economics.

Details

Journal of Financial Economic Policy, vol. 12 no. 4
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 27 July 2021

Walter Block and Sarah Huddell

This paper aims to examine the case against land use zoning.

Abstract

Purpose

This paper aims to examine the case against land use zoning.

Design/methodology/approach

We approach this analysis from the perspective of economics, health and geography.

Findings

The findings of this paper suggest that the case against zoning is overwhelming.

Research limitations/implications

This result applies only to public zoning, not the private variety thereof.

Practical implications

Public zoning should be repealed.

Originality/value

This paper approaches this from three perspectives: economics, health and geography; this has not been done before.

Details

International Journal of Ethics and Systems, vol. 37 no. 4
Type: Research Article
ISSN: 2514-9369

Keywords

Article
Publication date: 1 March 2003

Walter Block

Discusses Bagwell and Ramey’s theory that advertising can promote sales even if mostly informative. Posits there must be method in what would perhaps seem to be the…

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Abstract

Discusses Bagwell and Ramey’s theory that advertising can promote sales even if mostly informative. Posits there must be method in what would perhaps seem to be the madness of customers railing against firms’ lack of communication. Highlights the various slogans employed via jingles, etc. Criticises the analysis by Bagwell and Ramey and shows how their overall explanation fails.

Details

Cross Cultural Management: An International Journal, vol. 10 no. 1
Type: Research Article
ISSN: 1352-7606

Keywords

Article
Publication date: 16 May 2016

Laura Davidson and Walter E Block

– The purpose of this paper is to clarify definitions in economics.

Abstract

Purpose

The purpose of this paper is to clarify definitions in economics.

Design/methodology/approach

To apply the insights of Austrian economics to terms widely used in the profession.

Findings

The authors find that the Austrian approach brings clarification to communication.

Originality/value

The authors know of no other such attempt. Therefore this paper presumably has some originality.

Details

Journal of Economic and Administrative Sciences, vol. 32 no. 1
Type: Research Article
ISSN: 1026-4116

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