RealClearMarkets Articles

It cannot be said enough that economic growth is defined not by what people do, but by what they don’t. Which certainly helps explain the big declines in future-seeing equity prices in concert with President Trump’s haphazard rollout of his tariff plan. It’s an economy-sapping blast to the past that is forcing a revaluation of the innovative U.S. businesses so instrumental in creating present-day U.S. prosperity.   To see why, consider how investors analyze corporations. Their value is rooted in a market expectation of all the money they’ll earn in the...

There is a myth, growing in popularity, especially in Washington, D.C., that large technology companies somehow prosper at the expense of small businesses. The reality is far different, as seen from a recent survey by the Small Business & Entrepreneurship Council (SBE Council) and other evidence. Regardless, some in the political class and special-interest, high-priced, Washington-based attorneys thrive on stoking these divisions. That is nothing new as the politics of envy has perennially fueled ambitious political attacks. The danger now is that protracted litigation against...

With recession fears growing every day and the Dow Jones Industrial Average down over 15% since he took the oath of office, President Donald Trump has shown little concern. In fact, he is on record dismissing the significance of stock markets altogether, claiming they serve only to make “rich people richer.” It’s a view that might play well with some populist crowds or even draw cheers at his rallies, but it’s terrible policy—and worse economics. If Trump continues to ignore signals from the stock markets, it’s not just investors who will pay the price. His...

Every year during tax season, Americans turn to CPAs and financial advisors with hope in their eyes and a folder full of documents. They’re looking for guidance, clarity, and maybe even a refund. But here’s the one thing they’re not expecting to find: a financial advisor or CPA who’s still working long hours at age 63 and has no clear plan to retire. And certainly not tax-free. I say this with full respect—and from experience. I spent about 15 years as a financial advisor and Investment Advisor Representative (IAR), and not just for everyday clients. I was also...

“To consider the judges as the ultimate arbiters of all constitutional questions is a very dangerous doctrine indeed, and one which would place us under the despotism of an oligarchy.”– Thomas Jefferson in a letter to Abigail Adams, 1804. I’ve never believed the January 6 protest was an “insurrection,” but when prosecutors and judges engage in lawfare for overt political purposes, that is an insurrection. When the public loses all respect for the judiciary, society can become ungovernable. In their wild and frankly unhinged hatred of...

“DOJ Urges Federal Judge To Break Google’s Search Grip.” How interesting it would be to focus group the previous headline to a broad swath of the American people, young ones in particular. That is so because in urging U.S. District Judge Amit Metha to allegedly “Break Google’s Search Grip,” we’re witnessing DOJ lawyer David Dahlquist look far into the past. In Dahlquist’s words, “We’re at an inflection point. This court has an opportunity to remedy a monopoly that has controlled the internet for today’s generation and restore...

One of the federal government’s top bank regulators just got caught leaving the vault wide open. The Office of the Comptroller of the Currency (OCC), a bureau within the Treasury Department, admitted that it was the victim of a massive data breach—one that lasted for nearly two years and began under the Biden administration. It’s a scandal that should shake public trust in regulatory oversight to its core. While Biden officials were busy lecturing banks about cybersecurity, their regulators failed to follow the most basic protocols. The breach exposed two...

Earth Day is meant to raise global awareness and action on environmental issues, but this year the holiday stands against a stark backdrop of retreats from climate commitments — alongside broader sustainability and diversity initiatives — that has left stakeholders confused and advocates disillusioned. How quickly major corporations have stepped away from positions once championed as core values raises troubling questions about authenticity and intent. Were these commitments deeply held, or merely strategic window dressing? Recently, BlackRock, the world's largest asset...

A quiet executive order could soon make your next online purchase a lot more expensive. By moving to eliminate the de minimis tariff exemption, the Trump administration is effectively slapping a tax on all cheap imports—a policy that punishes consumers, especially low-income Americans, in the name of economic nationalism. Since its inception in 1938 the de minimis exemption has evolved from a tool for tax efficiency into an engine of e-commerce and small business success. At first it only allowed imports to enter America tariff free if it would cost too much to collect the...

Discussion about the use of trade barriers by foreign nations has ramped up in recent days because of the Trump administration’s misguided tariff hikes. Despite the many flaws in the administration’s arguments, a valid point has been raised regarding the use of non-tariff measures by some of the U.S.’s trade partners. This is particularly salient with regards to the European Union (EU). Vice President JD Vance called out the EU’s unfair targeting of the American tech sector with regulations like the Artificial Intelligence (AI) Act, the Digital Markets Act...

Diversity, equity, and inclusion (“DEI”) advocates are in retreat, and we’re all better off as a result. For more on that, please read the related comments of black leaders who are part of the National Center for Public Policy Research’s Project 21, who recently published a piece titled: “Rolling Back DEI Rewards Black Americans Instead of Crippling Them.” (In the interest of full disclosure, I am the Executive Director of the National Center’s Free Enterprise Project.) However, DEI advocates are activists at heart and will accordingly not...

The future will be defined by economic growth that will make the present appear limp by comparison. Driverless cars will loom large precisely because they’ll free humans from so much work. It’s what we’re not doing that powers us forward, not what we’re doing. And to be a passenger in a Waymo-equipped car is to see how much time we spend driving at the expense of more productive work. To enter a Waymo that transports us is to be freed to make calls, write, and work for five, ten, and fifty minutes; all this time formerly spent concentrating on the road rather than...

For two centuries, America has dominated the global economy not by favoring any one process or technology, but by embracing relentless— often disruptive— innovation. This concept was famously labeled “creative destruction” by Joseph Schumpeter in his 1942 magnum opus Capitalism, Socialism, and Democracy. He argued that capitalism continuously operates through constant upheaval where innovation relentlessly dismantles outdated structures to make way for progress. As Schumpeter wrote, “This process of Creative Destruction is the essential...

Fired by the Trump Administration, several high-ranking federal government officials are now suing the government for unlawful termination. All of these cases cite a unanimous decision in the 1935 Supreme Court case, Humphrey’s Executor. At first glance, the cases present competing wants: Fired government officials want their jobs back; President Trump simply wants to appoint ranking officials within the executive branch.  Courts are asked to weigh the conflicting demands. But Humphrey’s Executor was decided on other grounds.  In that case,...

The Virginia Department of Education recently issued a “guidance” for Virginia schools to help them implement Governor Glenn Youngkin’s executive order forbidding students from using cellphones while at school. The bill claims the ban is necessary to create a “distraction-free environment to focus on learning and reduce the alarming mental health crisis and chronic health conditions from cell phones and social media affecting Virginia students.”  Aside from exceptions for children with medical conditions requiring access to a phone, Youngkin’s...

“America First” is more than a slogan—it’s a guiding principle. For the Trump administration, it should guide policy across the board, including in the fast-moving world of cryptocurrencies. With the Trump administration now working to secure American leadership in digital assets, Congress must avoid undermining progress by giving foreign competitors a regulatory edge. Like it or not, cryptocurrencies are here to stay. Millions of Americans use them—for investing, transacting, or building the infrastructure of tomorrow’s financial system....

While there’s no evidence that Albert Einstein uttered the quip long associated with him about compound returns as the “8th Wonder of the World,” it’s not unreasonable to imagine the genius wit saying something just like that. When it comes to savings, compounding has wondrous qualities that become magical over time.  That’s why the patient investor can combine prudence with time to become a well-to-do retiree. As investor Barry Ritholtz pointed out in his recently released book How Not To Invest, compounding easily papers over a multitude of investment...

The Iranian economy has been in a nose dive since the mullahs hijacked the revolution in 1979 and seized control. Ayatollah Ruhollah Khomeini, the first Supreme Leader, created the Islamic Revolutionary Guard Corps (IRGC) – the regime’s Gestapo – and put them in charge not only of the military, but also over 70% of the economy, straddling key industries such as oil, gas, telecommunications, and infrastructure. It pays no tax and is answerable directly to the Supreme Leader. Its commanders and their families are now the wealthy elite in a country where the...

“Will Andersen’s father looked at a golf course and thought it should be a farm. Will looked at a farm and thought it should be a golf course.” That’s how the Wall Street Journal’s Ben Cohen described what became Landmand Golf Club in Homer, Nebraska. Presently one of the most sought-after tee times in the world, it wasn’t terribly long ago (Landmand opened up in 2022) that what became a public golf course was farm pasture that Andersen’s grandfather purchased before his grandson was even born. The Andersens are 4th generation farmers in Nebraska, and...