Imagine being a citizen of the Western Roman Empire early in the reign of the Emperor Honorius (ruled 395 to 423). You would know that the Emperor was not very good, and that the Empire was fighting off the barbarians only through the efforts of General Stilcho (c.359-408). Yet you would look back for better […]

The Industrial Revolution is traditionally held to have begun in the middle 1780s with James Watt’s invention of the rotary steam engine with condenser attached. (The condenser alone did not allow Watt’s engine to power machinery, since it still used the jerky Newcomen “beam” motion.) Yet there was another innovation, almost 20 years earlier, which […]

This column has not written enough about the economic damage done by excessive regulation, partly because most of that damage takes the form of new businesses snuffed out. Something that has been eliminated from existence is by definition difficult to write about. However, in my Industrial Revolution researches I have found an example of regulation […]

“The gates of Hell are open night and day Smooth the descent, and easy is the way: But to return, and view the cheerful skies In this the task and mighty labor lies.” Book VI of Virgil’s Aeneid, translated by John Dryden, published in 1697 when poetry was poetry, is a useful window on China’s […]

We are now slowly emerging from the scourge of Covid-19 and the main change in our economic management has been a massive surge in state spending, together with a call for a “Great Reset” to erode our freedoms further. It is therefore worth examining the emergence from two previous celebrated English outbreaks of plague, in […]

Peter Thiel is not alone in wondering where all the major technological innovations went. From the other end of the political spectrum Chicago professor Robert Gordon wrote a best-seller “The Rise and Fall of American Growth” speculating that U.S. productivity growth is slowing to zero. Yet if you look back, from the Industrial Revolution until […]

“Bros” connecting through the social media forum “WallStreetBets” last week staged a massive rally in the shares of GameStop (NYSE:GME) causing huge losses to a hedge fund that had shorted the stock. Most commentary suggested this should be a rare occurrence, as the hedge fund was a professional investor performing a valuable market function, while […]

The twentieth anniversary of this “Bear’s Lair” column passed in late October. During that period, the stock market has risen, but pretty much every other indicator of U.S. economic health has declined. Actuarially at age 70, I can expect to be writing this column for another 14 years and 3 months (though the column’s coherence […]

One of John Maynard Keynes’ favorite conceits, expressed in Chapter 12 of his 1936 “General Theory” was that selecting stocks was like a beauty contest in which you selected the six most attractive faces from a panel of 100 photographs – the person who agreed most exactly with the consensus winning a prize. For once, […]

We have heard a great deal about excessive inequality in the United States, which has among other things been used to justify the recent rioting. Historical comparisons however show that inequality is not especially high by the standards of the past, though it has certainly risen over the last thirty years. Yet the solution to […]