As the economic crisis approaches the two-year point, it is apparent that “this time is different.”  Few analysts believe that we are going to recover from this Great Recession in a fashion that resembles prior recoveries. Most argue about how long it might run (Japan’s recovery is now two decades [...]

The economic packages employed by the Bush Administration and extended by the Obama Administration are being increasingly questioned. Similar stimulus policies have been used for 50 plus years, although never in doses so large. “Stimulus” is merely a euphemism for inflationism and has been since the ideas of John Maynard Keynes [...]

This post is a repeat from several months ago. I post it again because of its value for those that have not watched it. For anyone concerned with liberty, it should not be missed. I am not sure when the interview took place, but would guess 30 to 50 years ago. [...]

Milton Friedman argues the case for the legalization of drugs. [youtube]http://www.youtube.com/watch?v=nLsCC0LZxkY&feature=related[/youtube] Alan Greenspan – HypocriteWorse than a DepressionPolitics Trumps Good Economics

Milton Friedman on dangers of allowing the Federal Reserve so much power: “The power to determine the quantity of money… is too important, too pervasive, to be exercised by a few people, however public-spirited, if there is any feasible alternative. There is no need for such arbitrary power… Any system [...]

Can We Have Another Banking Holiday? “But most commercial banking is “deposit banking” based on a gigantic scam: the idea, which most depositors believe, that their money is down at the bank, ready to be redeemed in cash at any time.” Murray Rothbard One of the most painful and important [...]

Economic development vs. undevelopment affects lives. The populations of undeveloped countries live close to the subsistence level, often one drought, poor growing season or other exogenous event away from famine. But economic development does more than assure ample food production. It is often the difference between life and death in [...]

More of Friedman at the Mayo Clinic. While dealing with healthcare, the lessons apply to government in general. [youtube]http://www.youtube.com/watch?v=TdcaLReCG3Y[/youtube] Obamacare on Life Support“God’s Work” Not Immune from EconomicsWitch Doctor Economics

Image via Wikipedia Image via Wikipedia Milton Friedman on Socialized Medicine. From a talk given at the Mayo Clinic in 1978. Although over 30 years old and focused on the medical industry, there are lessons here beyond the obvious. The semi-alert and above will recognize the process as a general [...]

The irrepressible Milton Friedman speaking about tariffs. Common sense for more than 200 years that periodically needs repeating. As the political class discusses jobs and their creation, watch for free trade to come under attack. Send your representative this short video. [youtube]http://www.youtube.com/watch?v=j0pl_FXt0eM[/youtube]

Milton Friedman was one of the strongest defenders of liberty and free-market capitalism. His insights, retrospectively, seem more important in light of what has happened and our current situation. This interview is  was done in 1975, almost 35 years ago. Viewed today, it is especially relevant for its prescience and [...]

The Fed has reached the point where there are two choices — Allow the government to shut down or allow itself to be the Treasury’s ATM machine. Inflation is, as Milton Friedman was fond of saying, “always and everywhere a monetary phenomenon.”  It is insidious. It becomes a part of [...]

Image via Wikipedia The piece below by Peter Boettke summarizes what I think about current economics. The Keynesian model or paradigm is wrong and always has been. Two primary reasons it was adopted were 1) the crisis of the 1930s was misunderstood but demanded “action” of some kind and 2) [...]

Image by Getty Images via Daylife An earlier post argued that Intervention was always harmful.  There are probably tens of thousands of these “favors” doled out to constituents. Receivers gain at the expense of non-receivers. In total, the economy is harmed (less goods and services produced) as a result of [...]

Image via Wikipedia Dick Armey talked about those riding in the wagon and those pulling the wagon. According to this CNN Money Report 47% of households pay no income tax, 53% do. That is an imperfect and overstated measure of those “riding” because many work but do not earn enough [...]

The referenced article is a talk given at the Chicago Fed. It discusses the Monetarist vs. “Output-gappers” views on inflation and deflation. Monetarists are probably represented best by the late Milton Friedman. Output-gappers are best represented by Keynesians such as Paul Krugman. I favor Friedman as opposed to the output-gap [...]