As the economic collapse approaches, be aware that government will become more desperate and resort to measure(s) that will enable it to survive. The myth of government as a good, necessary and positive force in society is coming unraveled. To understand how we got to this point, it is useful to review some economic history.. The US has gone through many [...]
The continuing optimism reported regarding an economic recovery is growing old while the economy does not grow at all (or at rates well below normal). The recession was declared over in June 2009. In light of what has happened and where we are today, does that seem credible? You don’t have to be too old to remember when 5 – [...]
Whether it is growing older and less patient or whether the world is actually becoming more stupid is an issue I wrestle with periodically. I suspect it is a bit of both. Here is an example of the nonsense that increasingly riles me. This snippet comes from a Reuters report available at CNBC: Dramatic action by central banks to counter a [...]
This guest post is from Chris Ferreira. It is a simple comparison of Austrian Economics with so-called mainstream economics: Keynesian vs Austrian Economics Austrian Economics is the oldest continuous school of economic thought. Founded in 1870, its roots date back to the early 18th century. It is thus the oldest, smallest, and, thanks to the economic crisis of the past few [...]
The return of the views of Friedrich Hayek (and his mentor, Ludwig von Mises) are becoming fashionable once again as a result of the continuing financial crisis. This video from the BBC discusses his economics in contrast with the Keynesian views that have created this crisis. The roots of the current crisis can be tracked back many decades, probably the [...]
The political class co-opted the economics profession. In America the decline began with the Great Depression where the political class panicked and “didn’t just stand there.” The intellectual support for political activism followed within years of the publication of John Maynard Keynes’ “General Theory” in 1936. That book, coupled with the desperation and pain of the time, provided the opportunity [...]
The rise and fall of countries has everything to do with the industriousness of its people. Wealth is created only by the productive sector, not by government. Governments grow large and powerful only by exploiting the wealth creation of the productive sector. Large and powerful governments are generally signs of wealthy nations. They are also signs of wealthy nations who [...]
A long interview of Milton Friedman conducted by Brian Lamb. Mr. Friedman, at 88 years of age, reminisces about his career in academia and his contributions to the field of economics and public policy. For Friedman fans it is an interesting interview. For economists or public policy wonks, it is highly rewarding.
Economists, as a group, are mostly useless. That was not always the case, although it has been so for much of the last fifty years. Captured by “physics envy,” economists sit in the halls of academe trying to impress one another with increasingly useless and arcane studies. This intellectual masturbation is what they are encouraged to do. It is also [...]
Almost three years ago, I argued that Obamanomics, President Obama’s version of economics, would fail and explained why. In reviewing Why Obamanomics Will Not Improve The Economy, I found it as relevant in hindsight as it was when it was first written. For the many new readers to this site, I hope you enjoy this topic: “The curious task of [...]
Tyler Cowan provides a series of short introductory videos on the the business cycle. These focus on how the various “schools” of economics explain business cycles. The short introduction is below. Other videos are available here.
The madness that passes for government and economics has hit all-time highs (lows???). Coherency and/or logic no longer apply. Either the world has become much dumber or the exploitation and plunder has become bolder. Perhaps both! In “The Triumph of Politics,” Detlev S. Schlichter addresses this very issue: I wonder if forty years of paper money have made the politicians [...]