Free Enterprise in Three Minutes Podcast with Ray Keating

Ray Keating looks at mercantilism and international trade, and explains why it made no sense in the 18th century, and it makes no sense today.

Ray Keating looks at private property rights and how they are foundational for economic growth and progress. Most economists understand the vital importance of property rights as encouragements to invention, innovation, improvement and investment.

Ray Keating takes a look at how government spending affects the economy. Various economists and lots of politicians claim that more government spending can be good news for the economy. Keating explains why that fails basic criteria of economic common sense.

The Great Depression is mistakenly blamed on market failure. In reality, the economy sank into and persisted in a depression due to government failure. The Great Depression was all about trade protectionism, tax increases, massive increases in government spending, and unprecedented regulation.

Karl Marx got pretty much everything wrong. Yet, remnants of his mistakes persist, including his ignoring economic reality when it comes to the relationship between business owners and workers.

Ray Keating asks: Why do so many economists – including supply-side economists, like myself – favor tax relief and oppose tax increases? Are we just evil, greedy people? Of course not. Taxes matter to everyone due to the various ways taxes impact incentives, opportunity and economic growth.

Ray Keating puts aside the partisan politics and sets the record straight on the actual economics of immigration. And it turns out that immigration ranks as an economic plus.

Politicians, the media and more than a few economists rather haphazardly toss around the word “monopoly.” Ray Keating sets the record straight on what a monopoly actually is, and no, Apple, the NFL and Major League Baseball are not monopolies.

The economy is not like poker, not like a sports game, and not about zero-sum thinking. This point matters because all sorts of bad economic ideas are rooted in mistaken zero-sum thinking, that is, the misguided idea that if one person gains in the economy, another person must lose.

No matter what you might have heard about profits being “evil,” Ray Keating makes clear that is not really the case. Instead, Keating explains the critical roles that both profits and losses play in our economy, i.e., serving as signals for how resources are allocated.

Ray Keating notes that there basically are two options when it comes to how economies ration or allocate resources – a government-led economy or a market economy. He quickly explains which one makes sense from an economist perspective. Keating concludes, “Remember, the more we have sound economics in politics, the better off we are. However, the more politics in economics, the worse off we are.”

Ray Keating explains what “scarcity” means in the world of economics; sums up why it matters; and notes that it should not be confused with other terms, like “poverty” or “shortages.”

Ray Keating explains that economics is only dismal when not practiced correctly, such as when political preferences are dressed up as economics. Keating proclaims that economics actually is quite exciting.

What are the policies that allow economic growth to flourish? Ray Keating highlights the “Big 5” policy or institutional requirements that are essential to allowing economic growth to flourish.

Why do some nations grow while others stagnate or falter? In this episode, Ray Keating identifies the true sources of economic growth, and no, they have nothing to do with government spending and infrastructure projects.

From the Trump White House to assorted TV talking heads, there's a lot of buzz about the evils of the U.S. trade deficit. But is a trade deficit truly bad for our economy? Ray Keating sums up why the trade deficit is not an economic negative. Keating also notes that imports aren't negatives, either. In the end, more often than not, a U.S. trade deficit signals strong U.S. economic growth. And Keat...

Ray Keating explains why protectionism doesn't work, as it hurts consumers, U.S. businesses and workers. And contrary to what politicians claim, there's nothing "fair" about imposing tariffs. As Keating says, "Protectionism sucks."

Ray Keating explains why free trade is a positive for U.S. businesses, workers and consumers. Contrary to some misguided politicians, Keating makes clear that free trade rocks!

In this first episode, Ray Keating answers the question: Is greed central to free enterprise? Was Gordon Gekko right about greed being good?