Reading Mein Kampf

Reading Mein Kampf is a very strange experience. The book and its author are so infamous that I almost feel like I have to preface what I say with the obvious statement that I am not a Nazi. But then why would I want to read a book by one of the most evil men in history? Hitler was unlike anyone else. His vicious hatred and the horrific acts he committed are something that none of us can understand. So out of historical curiosity, I decided to try and get an insight into the mind of this dictator. How could he possibly justify his evil ideology? Continue reading “Reading Mein Kampf”

The Gender Pay Gap Revisited

Feminists claim that one example of sexism in society is the fact that women get paid less than men. Conservatives counter by claiming that this difference is not due to sexism but to actual differences between men and women. They claim that men are better educated, have more experience and specialise in better paying (often more dangerous jobs). So which is it? Is the gender pay gap an example of sexism in society or is it just a myth that denies genuine differences in work done? Continue reading “The Gender Pay Gap Revisited”

On The Road To Recovery Or The Road To Nowhere?

The government has been celebrating Ireland’s recent exit from the Troika bailout and have proclaimed that Ireland is now on the road to recovery. The Taoiseach addressed the nation to celebrate the regaining of Ireland’s economic sovereignty. But are we out of the woods yet? Is Ireland facing a new dawn that leaves the nightmare of the recession behind or is it only a mirage of false hope while we are still stuck in the mud? Continue reading “On The Road To Recovery Or The Road To Nowhere?”

The Two Types Of Freedom

In debate libertarians argue that their ideology is based on freedom, all they want is to be free of government interference. After all, liberty is so important to them they put it in their name. But how can anyone disagree with that? Do social democrats hate liberty? What I have found is that in the debates between left and right, people are arguing past each other rather than with each other. So the left does believe in freedom, but they just view it differently. In this sense there are two types of freedom. There is negative liberty or freedom from, which is the main principle advocated by the right and there is positive liberty or freedom to, which is the main principle advocated by the left. Continue reading “The Two Types Of Freedom”

Endogenous Money Or How Loans Create Deposits

If you open any economic textbook you will find a standard explanation of how banks operate. The basic story is that a person deposits some money (say €100) into a bank which then saves a percent of this (say 10%) as a reserve and then lends out the rest. This €90 is then deposited by whoever receives the loan, 10% of which is saved and the rest is lent out. This goes on and on until the original €100 has become €1,000. It is easy to see why students are told this story; it is simple, intuitive and gives them a basic idea of banking. Unfortunately, it is wrong.

There is strong evidence that contrary to the above story (known as the loanable funds theory) the banking system works the other way around. Deposits don’t create loans; loans create deposits (this is known as endogenous money). This is a more complicated story but a more realistic one that can better guide our view of the economy. Continue reading “Endogenous Money Or How Loans Create Deposits”