By Monty Pelerin, on March 7th, 2010
Mark W. Hendrickson wrote a piece on Keynesian Economics in American Thinker today. It is an excellent read for fans or opponents of Keynes. Even better for those who want to learn, or refresh, some economics.
In the piece he discusses the following four topics:
1) Thralldom to the Keynesian macro-economic paradigm.
2) Blindness to history.
3) An enormous faith in government competence.
4) Dangerous assumptions about the capital markets.
Hendrickson concludes with the following:
“Stimulus plans haven’t worked, won’t work, and we can’t afford them. We are already in great economic danger from deficit spending. A policy to plunge us even deeper into the debt abyss is kamikaze economics.”
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By Monty Pelerin, on February 21st, 2010
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As an economist, I am frequently asked about the economics of Marx. I generally nod approvingly, which usually pleases or perplexes the inquirer. It is only after some discussion does it become apparent that I am talking about Groucho Marx and not Karl Marx.
Groucho Marx was an American original. Regarding economics, Irving Berlin once quipped: “If Marx had been Groucho instead of Karl, the world would be in less of a snarl.”
In reality, Groucho’s political leaning was rather pronounced to the left. But his observations and quips about the world and political scene were spot on. There are probably few quotes better than the following to describe out current political scene, especially its practitioners:
Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.
The secret of life is honesty and fair dealing. If you can fake that, you’ve got it made
There’s one way to find out if a man is honest – ask him. If he says, “Yes,” you know he is a crook.
Those are my principles, and if you don’t like them… well, I have others.
Who are you going to believe, me or your own eyes?
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By Monty Pelerin, on February 12th, 2010 More of Friedman at the Mayo Clinic. While dealing with healthcare, the lessons apply to government in general.
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By Monty Pelerin, on February 11th, 2010
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 one that applies to any industry in which the government becomes involved.
The video provides a prescient framework for where we were heading in 1978 and where we are in 2010. There is nothing new in this video in the sense that the insights were unique to Friedman. Economists have known these truths since before Adam Smith. What is unique is the clarity and force with which Friedman delivers the message. But that was not unique to this topic for Friedman. It was a staple of his discourse on any subject.
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By Monty Pelerin, on February 10th, 2010 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.
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Friedrich von Hayek
Friedrich von Hayek founded the Mont Pelerin Society.
“Monty Pelerin” is a pseudonym chosen by this blogger to convey general agreement with the philosophy, goals and spirit of the Mont Pelerin Society. No other connection exists between the blogger and the Society.
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