As I prepared an article on how banks generate illusory profits and artificial levels of capital by gaming the rules, I rediscovered this limerick in Gordon Kerr’s related paper, The Law of Opposites: There was a young man from Darjeeling Who got on a bus marked “To Ealing” The sign on the door Said “Don’t spit on the Floor” So he lay back and spat on the ceiling Here’s a great metaphor from the book, which explains how the rules […]
Tags: Accounting, Banks, Financial Crisis, IFRS, Profit
Part I, the price system: Part II, profit and loss: See also, Kirzner, How Markets Work: Disequilibrium, Entrepreneurship and Discovery (PDF), which is a wonderful rebellion against the over-simplification of neo-classical economics. For example: Austrian theory, as presented here, places great weight on ‘entrepreneurial discovery’ which enables decentralised decision-makers to recognise when present decisions can be improved upon, and to anticipate future changes in the decisions being made by others. Movements in prices, production methods, choices of outputs, and resource […]
Tags: Austrian School, Books, economics, LearnLiberty.org, Liberty, Markets, Prices, Profit, Video
Steve Baker is the Conservative MP for Wycombe.
Steve was first elected to Parliament in 2010. He was previously an RAF engineer officer then a consulting software engineer. Find out more...
Steve holds regular surgeries in High Wycombe. If you would like an appointment, please contact me.
