Nathan Lewis

Nathan Lewis is the author of four books on economic topics, including three about the gold standard. He has maintained a website on economic topics since 2005, at NewWorldEconomics.com. He has fifteen years of experience in the asset management industry, in research and portfolio management. Today, he is the editor of the Polaris Letter, an investment newsletter.

Archives

Tariffs Done Wrong

_{Nathan Lewis
April 24, 2025}

Economic Nationalism, done right, could work very well for the United States in coming decades. The most glorious period for US business, before 1913, was a time of high tariffs and controlled immigration. But, it was also a time when there was no Income Tax; and, in this pre-Federal Reserve era, the money was fixed to gold. The result was very good. The United States, at first a promising “emerging market,” ended up a global superpower.

Another Round of Inflation on Deck

_{Nathan Lewis
March 12, 2025}

When we wrote this in 2022, it took about $1800 to buy an ounce of gold. Today, it is more like $2900. That implies an $1800/$2900=0.621 or a 38% decline in dollar value over that period. Prices will eventually adjust, over a period of years, to the new, lower value of the currency, with some prices moving faster and some moving slower. “All things being equal” (they never are but it is a good principle), we should expect a $2900/$1800 or 61% rise in prices of goods and services going forward, compared even to the inflation-boosted prices that we have had to get used to in 2022-2024.

A New Era of Economic Nationalism

_{Nathan Lewis
February 17, 2025}

The United States was founded on Free Trade. And, high tariffs. Domestically, the United States had exceptional economic policy. There were hardly any taxes, and the currency was reliably fixed to gold. Trade was Free between States. With what I've called "The Magic Formula" (Low Taxes and Stable Money), the US got richer — even with high tariffs with the rest of the world.

Gold Is Still Your Only Monetary Alternative

_{Nathan Lewis
January 28, 2025}

Today, we are seeing a lot of the institutions and bad ideas of the Post World War II Consensus breaking down and collapsing. Among these is the rather stupid notion that economies should be managed by some combination of currency and interest rate manipulation, and “fiscal stimulus” spending that amounts to utter waste, for the simple reason that it has no justification except as “stimulus.” These are the conclusions of “Keynesianism,” which has been taught in all universities since the 1940s.

How to End the Fed

_{Nathan Lewis
November 18, 2024}

President Wilson enacted the Federal Reserve Act in 1913. This allowed a consortium of private bankers to establish what amounted to a central bank monopoly currency issuer in the United States — although they took great pains to deny that was the goal. The Federal Reserve was never part of the government. It was the fourth attempt by private bankers to establish a monopoly currency issuer in the United States.

Now Let’s Get Rid of the Income Tax

_{Nathan Lewis
October 21, 2024}

Presidential Candidate Donald Trump recently floated the idea of getting rid of the Income Tax completely. I think this is a great idea — and so did the Founders themselves, who effectively barred Direct Taxes in the Constitution, including the Income Tax, until it was legalized in the Sixteenth Amendment of 1913. Before 1913, there was no Income Tax in the United States.

Trump’s Tax Plan Will Be Fine

_{Nathan Lewis
October 10, 2024}

The Great Depression got started with the passage of the Smoot Hawley Tariff in the United States, by the Republican Party, which immediately set off a cascade of retaliatory tariffs worldwide. This alone did not cause the Great Depression, but it did cause the initial downturn. This was followed by a long string of bad decisions in reaction to that downturn, such as Republican Herbert Hoover's 1932 tax increase which took the top income tax rate from 25% to 63%.

Time to Take Sound Money to the Federal Level

_{Nathan Lewis
June 5, 2024}

The idea of “Sound Money” — this means using gold and silver as money — has been persistently popular among the states for over a decade. Beginning with Utah in 2011, one state after another has removed barriers and impediments to using gold and silver, and digital or other alternatives based on gold and silver, in a monetary role. With over 40 states now having passed some kind of Sound Money legislation, it is now time to take on the federal government. Representative Alex Mooney (R), of West Virginia, recently introduced the Monetary Metals Tax Neutrality Act, HR 8279, into the US House. The bill aims to repeat, at the federal level, what has already been accomplished in many states.

Zimbabwe’s Central Bank Starts Africa’s Path to a Gold Standard

_{Nathan Lewis
April 11, 2024}

This month, the Central Bank of Zimbabwe launched a new gold-based currency, the first gold-based currency from a government since Richard Nixon effectively ended the world gold standard system in 1971. As long as the Central Bank of Zimbabwe adheres to some important principles, and doesn't play politics, it should be fine.

Life After Capitalism Highlights The Way Forward For Economists

_{Nathan Lewis
October 6, 2023}

Life After Capitalism is full of new ideas with great potential to advance the study of economics out of its current stagnant ruts. Among other things, it may help bridge the cultural divide between business innovators and policy wonks. Readers will find new vistas and horizons in every chapter.

The BRICs Go For Gold

_{Nathan Lewis
July 16, 2023}

After months of debate about various currency and commodity baskets, a Russia- and China-led consortium has apparently settled on using gold as the basis of a planned new international currency system separate from the US dollar and euro.

What’s Being Done to Reduce Wealth Inequality in the US?

_{Nathan Lewis
April 7, 2023}

Wealth inequality has grown in recent years. There are nearly 1,000 billionaires in the U. S. and the wealthiest Americans have never been richer. In contrast, poor and working-class Americans have seen their incomes stagnate and fall. Discovery Fellow Nathan Lewis joined NPR to discuss what can be done to reduce wealth inequality in the United States.

Why Joe Biden’s Tax Plan Isn’t Going To Work

_{Nathan Lewis
March 29, 2023}

Socialists always have all kinds of fantasies, but they live in the same real world as the rest of us, and in the real world there are certain cause and effect relationships that are, by now, well known.

“Taxing All Income The Same” Done Right

_{Nathan Lewis
March 29, 2023}

“Taxing all income the same” is the right idea. Without it, we are lost at sea where every possible stupidity can be justified by “fairness.” This is the principle of Uniformity, and it should be the basis for our tax system of the future.

What Is “M2,” And Why Should We Care About It?

_{Nathan Lewis
August 8, 2022}

Of the various “monetary aggregates” (at one point, I think over thirteen were identified), “M2” is perhaps the most commonly referenced. It is supposedly important. But why? To answer that, we have to first figure out what it is.

What’s Wrong With Turkey #2: Making It Way Too Complicated

_{Nathan Lewis
January 16, 2022}

Recently, we took a look at the Central Bank of Turkey’s balance sheet, to get an idea of what has been going on, and what to do about the sudden decline in the foreign exchange value of the Turkish lira.

What’s Wrong With Turkey?

_{Nathan Lewis
January 9, 2022}

Unfortunately, Turkey has a long history of currency failure, so it would be no surprise if the country were to stack up some new failures today. But, it doesn’t have to be that way. In the past, mostly before 1970, the Turkish lira had long stretches of reliability, and perhaps Turkey will aspire to greatness again.

What’s Wrong with “Neoliberal Economics”?

_{Nathan Lewis
November 23, 2021}

As a member of the “supply side” branch of modern classical economics, I might be labeled a “neoliberal economist” by some. But, there are important points at which common “neoliberal” economics fails badly, and which give rise to much-deserved criticism.

Rationalizing Tariffs

_{Nathan Lewis
October 24, 2021}

Economic Nationalism tends to boil down into two basic policies: tariffs, and limited immigration. Sometimes, in the past, it has meant currency devaluations, but today that is not really proposed. On a broader basis, it means that economic policy should result in positive outcomes, for the whole of the population.

Prescription Drugs Should Be Almost Free, And Actually, They Already Are

_{Nathan Lewis
October 1, 2021}

For a long time, people have been debating drug prices in the United States. This is stupid. Today, about 90% of all prescriptions are for generic drugs. Probably, the percentage should be higher than this (it is 97% in China). Generic prescription drugs should be like Tylenol — almost free. Actually, they already are almost free.