“Last year, Congress passed a law that directs the Federal Reserve to set limits on debit card swipe fees that are reasonable and proportional to the cost of processing those transactions. Like most Americans, I had no idea that swipe fees charged to American businesses are the highest in the world.” WorldYearsIdeasLastsLawCostLimitsHighestCongressCardsNo IdeaReasonableLast YearReservesTransactionsFeesProcessingFederal ReserveAmerican BusinessDebitDebit Cards Author:Peter Welch
“Harold, the young kids out there are not going to be willing to go to the barricades in defense of lowered transaction costs.” KidsYoungWillingCostDefenseTransactionsBarricades Author:Murray Rothbard
“A firm, therefore, consists of the system of relationships which comes into existence when the direction of resources is dependent on an entrepreneur... As a firm gets larger, there may be decreasing returns to the entrepreneur function, that is, the costs of organising additional transactions within the firm may rise.” MayExistenceReturnCostResourcesFunctionEntrepreneurFirmDependentTransactions Author:Ronald Coase
“Index funds have regularly produced rates of return exceeding those of active managers by close to 2 percentage points. Active management as a whole cannot achieve gross returns exceeding the market as a while and therefore they must, on average, underperform the indexes by the amount of these expense and transaction costs disadvantages.” WholeAchieveReturnAmountCostManagementRateInvestingAverageActiveManagersFundExpensesGrossPercentagesDisadvantagesTransactionsIndex FundsActive Management Author:Burton Malkiel
“For a small open economy that trades mostly with the euro zone it makes absolute sense to be part of the currency union. Our currency has already pegged to the euro since 2002. We don't have an independent monetary policy. We are regulated by the European Central Bank in Frankfurt, but we are not able to reap all the profits. Our businesses want to save the transaction costs.” WantAbleEconomyPolicyCostAbsolutesIndependentTradeUnionsProfitZoneCurrencyReapMonetaryTransactionsEuroCentral BanksMonetary PolicyFrankfurt Author:Dalia Grybauskaite
“In fact, a large part of what we think of as economic activity is designed to accomplish what high transaction costs would otherwise prevent or to reduce transaction costs so that individuals can negotiate freely and we can take advantage of that diffused knowledge of which Friedrich Hayek has told us.” ThinkingFactsIndividualEconomicCostActivityAdvantageAccomplishTransactionsHayekFriedrich Hayek Author:Ronald Coase
“Regardless of how it's done, transaction costs will continue to plummet as computers get more powerful. Low transaction costs are a wonderful thing if you're in the transaction business. They're wonderful for consumers too, making it cheaper and easier to buy things and creating new things to buy.” IfsDonePowerfulWonderfulEasierCostComputerCreatingLowsConsumersNew ThingsWonderful ThingsCheaperTransactionsCreating New Things Author:Nathan Myhrvold
“You will think me transported with Enthusiasm but I am not. — I am well aware of the Toil and Blood and Treasure, that it will cost Us to maintain this Declaration, and support and defend these States. — Yet through all the Gloom I can see the Rays of ravishing Light and Glory. I can see that the End is more than worth all the Means. And that Posterity will tryumph in that Days Transaction, even altho We should rue it, which I trust in God We shall not.” ThinkingShouldWellsMeanI CanEndsStatesLightSupportBloodTrustCostGloryIndependenceTreasureEnthusiasmRaysTrust In GodDeclarationToilPosterityGloomDeclaration Of IndependenceTransactionsJuly 4th 1776Revolution Founding FathersRue Book:The Works of John Adams Vol. 1: Life of John Adams Source: The Works of John Adams Vol. 1: Life of John Adams