{"id":43962,"date":"2019-02-22T10:23:15","date_gmt":"2019-02-22T15:23:15","guid":{"rendered":"https:\/\/olduvai.ca\/?p=43962"},"modified":"2019-02-22T10:23:19","modified_gmt":"2019-02-22T15:23:19","slug":"who-knows-the-right-interest-rate","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=43962","title":{"rendered":"Who Knows the Right Interest Rate"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.cobdencentre.org\/2019\/02\/who-knows-the-right-interest-rate\/\">WHO KNOWS THE RIGHT INTEREST RATE<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">On January 6, we wrote the&nbsp;<a href=\"https:\/\/monetary-metals.com\/surest-way-to-overthrow-capitalism-report-6-jan-2019\/\">Surest Way to Overthrow Capitalism<\/a>. We said:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIn a future article, we will expand on why these two statements are true principles: (1) there is no way a central planner could set the right rate, even if he knew and (2) only a free market can know the right rate.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today\u2019s article is part one of that promised article.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s consider how to know the right rate, first. It should not be controversial to say that if the government sets a price cap, say on a loaf of bread, that this harms bakers. So the bakers will seek every possible way out of it. First, they may try shrinking the loaf. But, gotcha! The government regulator anticipated that, and there is a heap of rules dictating the minimum size of a loaf, weight, length, width, depth, density, etc. Next, the bakery industry changes the name. They don\u2019t sell&nbsp;<em>loaves<\/em>&nbsp;of bread any more, they call them bread&nbsp;<em>cakes<\/em>. And so on.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is always a little arms race going on, wherever there are government controls. One recent example is Uber. This company actually illustrates two different workarounds. One, is labor law. Labor law sets not only a minimum price for labor, but also adds many other restrictions that make companies less flexible, and therefore less able to deliver what customers want. So Uber drivers are not&nbsp;<em>employees<\/em>. Oh no, they are&nbsp;<em>independent contractors<\/em>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Two, is taxi regulation. Uber is not a&nbsp;<em>taxi<\/em>. It is a&nbsp;<em>ride-sharing service<\/em>. Under regulation, definitions determine the difference between life and death. So everyone is forced to play a game of hair-splitting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WHO KNOWS THE RIGHT INTEREST RATE On January 6, we wrote the&nbsp;Surest Way to Overthrow Capitalism. We said: \u201cIn a future article, we will expand on why these two statements are true principles: (1) there is no way a central planner could set the right rate, even if he knew and (2) only a free [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7380,7957,534],"class_list":["post-43962","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cobden-centre","tag-keith-weiner","tag-monetary-policy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43962"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43962\/revisions"}],"predecessor-version":[{"id":43963,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43962\/revisions\/43963"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}