Property rights and the rule of law are essential foundations for a vibrant economy. When they are threatened, or uncertain, the result is inefficiency, rent-seeking, a larger underground economy and capital flight.
Most people want to help the poor, but that doesn't mean intentions yield results. To illustrate, let's take two Californians, Ashley and Betsy. Ashley is 18, working retail, about to go off to UCLA, and both of her parents are educated professionals living in Santa Monica. Then, there is Betsy, a 32-year old single mother from San Bernardino, who only has a high school diploma and works full-time as a waitress.
The Federal Reserve’s chairwoman, Janet L. Yellen, said on Wednesday that it would be a “grave mistake” for Congress to adopt legislation proposed by House Republicans constraining the Fed’s management of monetary policy.