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Economics link of the day

I really liked this article that I found from Reddit: Economics In Four Dimensions. Here are two good passages to entice you:

The most complex factor in the study of economics is time. Because liberal and statist economic theory does not properly account for the fourth dimension, it rarely predicts economic development accurately.
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Banks and credit-card companies invest hard capital at a substantial risk of default, to earn money in the future through interest and fees. If they believe their ability to profit from this risk and expense is threatened, and they’ve been demonized to the point where they have no effective means to influence politics to their advantage, the only logical move is to reduce risk, and increase the price of the loans they feel confident in making. This hurts new businesses and low-income consumers the most, because they have the least impressive credit ratings.

Posted in Economics, Socialism