A Righteous Smackdown For Keynesian Fiscal Stimulus
Courtesy of Arnold Kling. And see Nick Gillespie as well. Anyone else think that we are rushing headlong into a policy thicket we don’t quite understand? The “bigger is better” spirit is alive and well when it comes to planning out fiscal stimulus, but as Kling points out, no one can quite tell us why bigger is better except that . . . well . | Read More »
Dear Christina Romer
Please speak truth to power: . . . President-elect Obama’s candidate for chairman of the Council of Economic Advisers, Christina Romer, herself a Keynesian, has done research that undercuts the Keynesian view of good fiscal policy. Some of this research is in a March 2007 paper, “The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks,” co-authored with her husband, | Read More »
Liberalism vs. Capitalism
Capitalism has kind of gotten a bad rap, and here in America of all places. Never mind that our unprecedented economic growth can only be attributed to capitalism, the free market, the curiously successful idea that a man should be allowed to keep the fruits of his labor rather than handing ALL or even some of it over to the government. When stated in this | Read More »
Changing Our Conservative Vocabulary
Something has been bothering me for some time about the vocabulary conservatives and libertarians have been using to describe liberal economy policy. We hear it on radio from Boortz and Hannity and television from O’Reilly; we read it on blogs by Thomas Sowell and in newspaper columns by George F Will.
The term I refer to is “wealth redistribution,” called for throughout history by Marx, Lenin, Castro and Chavez. Liberals in America don’t use the term, knowing that it will bother conservatives and many moderates. Unfortunately, it is unconvincing to many, especially liberals, that such a beast as wealth distribution would be a bad thing.
After all, “wealth redistribution” is just taking money from the evil, awful “rich” and giving it to those poor, needy “less fortunate.”
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Keynes (right) with Harry Dexter White The volume of Keynesian and neo-Keynesian economic prescriptions churning out of the newspapers and talking heads on TV right now is a something to behold, ain’t it? One shudders at the thought of the despondency that will greet the eventual failure of most of these remedies. We have a very unusual and in a basic sense unstable condition where | Read More »
Fear Not, Middle Class! Here Comes the Working Families Czar!
Vice President Elect Joe “J-O-B-S” Biden recently announced that he will be the working families czar, a very important role for Mr. Biden, considering the fact that being Vice President is less than a fulltime job. Once he’s done figuring out which article of the constitution describes the executive branch, VPE Biden will frantically get to work on tasks such as: making sure the middle | Read More »
Leveling the playing field?
With the plight of the Big Three Automakers front and center in the news for the past few months, much has been made about the so called “leveling” of the playing field for American automakers. In this case, “leveling” the playing field, means imposing tariffs and trade restrictions on foreign automakers commensurate with those imposed on American automakers in overseas markets. Imposing import quotas and | Read More »
F.A. Hayek on Meet The Press in 1975 – A Must Listen!
One of my favorite posters, John, over at Swords Crossed posted a diary with a link to a recording of Hayek on a 1975 Meet The Press Show, so I wanted you all to have the chance to hear it, amazing how relevant his words are today! Peter Boettk Writes; This is F.A. Hayek in 1975 on Meet the Press. If you have never listened | Read More »
Notes on the crisis
I’m standin’ in the shadows with an aching heart I’m lookin’ at the world, tear itself apart — Bob Dylan, “Mississippi” Here Dylan has given us a brilliant summation of the condition of the simple citizen in the face of the economic crisis that exploded in our faces in mid-September, and which may well prove more momentous than another calamity, another September, seven years earlier. | Read More »
At What Price A Domestic Auto Industry?
This week, Congress returns to the question of what to do with the domestic auto industry, Detroit’s humbled Big Three. And the options range from awful to unthinkable. Yesterday we got a reading of auto sales in November. The story was extremely bad. Continuing the trend from October, sales were down anywhere from a third to a half, across all the manufacturers who sell in | Read More »
No More Windfall Profits Tax
Good on the President-elect for this decision: President-elect Barack Obama is not planning to implement a windfall profit tax on oil companies because prices have dropped below $80 a barrel, an aide said on Tuesday. “President-elect Obama announced the policy during the campaign because oil prices were above $80 per barrel,” an aide on Obama’s transition team said. “They are currently below that now and | Read More »
Tax Havens: Myths v. Facts
It’s time to watch some educational TV. And it’s always worth tuning in with Dan Mitchell:
China Devalues Its Currency
It seems to me that focus has shifted away from China’s economic and financial doings during the acute financial crisis that began last September. The story in China for most of this year and last year has been extremely high inflation (particularly in prices for staple foods), and vigorous measures by the country’s banking and monetary authorities to reduce the formation of credit. Up till | Read More »
Here’s Johnny: The Reemergence Of Keynesian Economics
John Maynard Keynes was born on 5 June 1883 in Cambridge into a well-to-do academic family. His father was an economist and a philosopher, his mother became the town’s first female mayor. Suitably stimulated, he excelled academically at Eton as well as Cambridge University, where he studied mathematics. He also became friends with members of the Bloomsbury group of intellectuals and artists. After graduating, Keynes | Read More »
Mandatory Voluntary Service, Now With Compensation!
In the days following the Presidential election, the Obama team quickly made a transition from campaigning to running some terribly nebulous Office of the President-Elect. On this website, our Dear Leader-Elect proposed a term of mandatory civilian service for high school and college students, perhaps as some odd form of payment for their fervent support of him during his near half-term presidential campaign. The proceeding | Read More »