Dangerous Nudges

Nudging is all the rage. Many countries now even have their own nudging units. Nudging can potentially play a role in good policy toward desirable ends, given our innate irrationality. However it is vital that people still have the freedom to make irrational decisions. Unfortunately, amid all the buzz, nudging is out of the gate

A Very Simple Economic Freedom Index

Many of the predictions of Causal Economics center on the impact of consolidated power, because that is one of the main conditions that allows for decoupling, driving up B/C ratios for those with power and driving down B/C ratios for those without power. Economic freedom and economic consolidation are at opposite ends of the spectrum.

Is Growth and Deflation Possible?

It’s commonplace to see increasing real GDP as a measure of improved utility in society. But it’s less common to imagine an even better scenario of increasing real GDP and deflation. In such a situation, real incomes are increasing in a strong and sustainable fashion, as we’ll show here. The word ‘deflation’ itself conjures up

Socialism? Capitalism? Is it Time for Causalism?

100% Pure Socialism and Capitalism each convey unstable long-term extremes. Raw socialism will snuff out productive growth and innovation as individual entrepreneurship gives way to reliance on big government, run by bureaucratic elites. It simply removes incentives to innovation. Raw Capitalism will produce powerful capital holders that naturally steer societal rules to their own benefit

Why Doesn’t “Regular” Economics Work?

The mainstream economics most of us learned in school is known as neoclassical economics, and it quite simply doesn’t explain human behavior. It’s all built on the 100% rational economic man – homo economicus. And well, people are regularly observed to be irrational/emotional. The recent surge in popularity of Behavioral Economics came about to fill the