A study by two UCLA economists argues that FDR’s policies prolonged the Great Depression by 7 years. This should come as no surprise to those who understand some of the basic principles of economics, as articulated in books like Basic Economics: A Common Sense Guide to the Economy by Thomas Sowell or Free to Choose […]
Upside Down Economics
Good article the other day by Thomas Sowell on the financial crisis. He begins: From television specials to newspaper editorials, the media are pushing the idea that current economic problems were caused by the market and that only the government can rescue us. What was lacking in the housing market, they say, was government regulation […]
Reaganomics vs. Obamanomics
Peter Ferrara had an excellent article in yesterday’s Wall Street Journal contrasting Reagan’s and Obama’s economic policies. Here are the key points of the article. In his inaugural address, President Barack Obama said, “The question we ask today is not whether our government is too big or too small, but whether it works — whether […]
Is Government Spending the Answer to an Economic Downturn?
Keynesian economics — which dominated economic thought for a decent chunk of last century — said yes. Other schools of economic thought — which I find more plausible — do not think so. Gregory Mankiw had a good, brief discussion in the NY Times last month of how there is ample reason to doubt that […]
Cato Institute to Obama: "Mr. President, We Disagree"
The Cato Institute has taken out a full page ad in some major publications stating that “we the undersigned do not believe that more government spending is a way to improve economic performance.” From their site: President Obama says that “economists from across the political spectrum agree” on the need for massive government spending to […]
Thomas Sowell on the Stimulus
Thomas Sowell has a very thought-provoking column on the stimulus called “What Are They Buying?” I talked yesterday about how government spending is not the way to stimulate the economy. On top of this, Sowell makes note that “out of $355 billion newly appropriated, the Congressional Budget Office estimates that only $26 billion will be […]
What is Good About Free Markets
James Stoner has a good article today called “Does Economic Liberty Merit a Public Defense?” His point is that “despite the financial crisis, markets deserve a spirited public defense that acknowledges both their virtues and limits.” He discusses four essential things that free markets provide, and then outlines a few guidelines on regulation. While I […]
Five Myths About the Great Depression
Andrew Wilson has an excellent article over at the Wall Street Journal today on Five Myths About the Great Depression. He states: The current financial crisis has revived powerful misconceptions about the Great Depression. Those who misinterpret the past are all too likely to repeat the exact same mistakes that made the Great Depression so […]
If You Are Not Economically Free, You Are Not Politically Free
Nearly all recognize the value of freedom in the political sphere. It is wrong for the government to coerce us to speak, believe, or think contrary to our wishes, or to deprive us of our right to life without due process. But it is equally necessary to realize that economic freedom is a necessary component […]
What McCain Should Say (Update: Should Have Said)
The guiding principle of sound governmental and economic policy is to maximize freedom. That’s it. Very simple. Government exists to protect freedom, not restrict it. This is not only right in principle, but it also works better — when people are left free to make their own choices, greater prosperity results (and I don’t mean […]