“All eyes are on the Upper Midwest as both parties battle for control of Congress this November. Democrats need to flip four Senate seats to take control of the upper chamber, and the hotly contested race between former Republican Congressman Mike Rogers and progressive Democrat Abdul El-Sayed in Michigan could be the deciding factor. The RealClearPolitics polling average has El-Sayed up by over three points, although many recent polls have the race well within the margin of error. Interestingly, in an attempt to make up ground, Mike Rogers has released a new ad this week that directly breaks with President Trump’s trade policies, explicitly targeting the 50% tariff imposed on Canadian goods.” (10/14/26)
“Under the Keynesian model, a given increase in income will mechanically generate a given increase in consumption, and thus national output. Readers with a background in economics will recognize this as the Keynesian multiplier. But what Hall showed, building off Friedman, is that such a mechanical relationship is conditional, at best. Whether the change in income was anticipated or unexpected, permanent or temporary, will influence how effective the policy will be.” (10/14/26)
“President Donald Trump likes to say he is ‘nine for nine’ with the candidates he has backed in Latin America and the Caribbean, and Brazil’s Oct. 25 runoff could make it ten. Senator Flávio Bolsonaro led the first round on Oct. 4, and Brazil under his leadership could seek to join the Shield of the Americas, the security coalition Washington launched in March and now presents as proof that the hemisphere has turned its way. How much support do the coalition’s current members have at home? Less than Trump’s scorecard suggests.” (10/14/26)
“On October 11, a federal judge ordered the Trump administration to stop using taxpayer funds for television ads featuring the president. Yet two commercials continued airing past the court’s deadline. By the following evening, Justice Department lawyers had apologized, explaining that agency counsel had not seen the order in time. What had been a political accusation had now become a judicial intervention. And now even the government’s response to the order was under scrutiny. For President Donald Trump, the larger danger is electoral. His presidency has turned expansive executive authority into a political calling card. But when that authority appears to serve the president’s campaign interests rather than the public as a whole, it can become a liability. What began as a dispute over advertisements could help turn the November 3 midterms into a contest over where government ends and Trump’s political operation begins.” (10/14/26)
Source: Ludwig von Mises Institute
by Jonathan Newman
“The Keynesian paradigm suffered in the stagflation of the 1970s. Price inflation and unemployment surged simultaneously, which resulted in broad skepticism of the old Keynesian models while loyal Keynesians scrambled to offer explanations. Moreover, it became apparent that the Keynesian consumption function didn’t hold up to empirical scrutiny—disposable income wasn’t as good of a predictor of aggregate consumption as early Keynesian models assumed. This watershed moment in the history of economic thought produced new tributaries and strengthened some existing ones. … The mainstream consensus that has emerged out of this hodgepodge is that Keynes was right about a lot, but his framework needs ‘microfoundations.'” (10/14/26)
“Is a college educations worth the hassle and expense? Amid concerns over soaring tuition costs and campus political intolerance, a growing share of Americans aren’t convinced that higher education is worthwhile. Academics themselves—the honest ones, anyway—acknowledge that they’ve squandered a lot of goodwill over the years. Fortunately, it’s still possible to get an education that justifies the time and money—though the path doesn’t necessarily go through college.” (10/14/26)
“As support for Israel crumbles within the United States as a consequence of Israeli behavior, principally its livestreamed genocide in Gaza and ethnic cleansing of the West Bank and Lebanon, Israelis have revived an old strategy for creating ‘a bond between Israel and the rest of the conservative world’: ginning up fear and hatred of Muslims. As Drop Site News previously reported, a study commissioned by the Israeli Ministry of Foreign Affairs and conducted by Mark Penn’s Stagwell Global concluded that the ‘best tactic to combat’ Israel’s increasingly negative public image ‘is to foment fear of ‘Radical Islam’ and ‘Jihadism,’ which remain high.’ … Speeches at this year’s National Conservatism conference suggest that Israel and its powerful lobby have embraced that tactic, fearmongering over the supposed Muslim hordes plotting to take over Europe and the U.S.” (10/14/26)
“As the war in Ukraine grinds into its fifth winter, the collapse of recent diplomatic initiatives and Washington’s explicit pivot from arming Kyiv to brokering a territorial freeze have laid bare a stark new reality. In February 2022, Western leaders predicted that sanctions would cripple Russia within months and that a united West would see Ukraine through to victory. More than four years later, Russia’s economy has bent but not broken. The United States has turned from Ukraine’s chief backer into a reluctant broker. Europe is paying for a war it cannot win.” (10/14/26)
