It is seventy years, now, since near the end of the Second World War Austrian economist, and much later Nobel Prize winner, Friedrich A. Hayek published his most famous article, “The Use of Knowledge in Society,” in September 1945, demonstrating why it is impossible for a system of socialist central planning to effectively manage a complex and ever-changing economy better than a functioning, competitive free market order.
Author: Richard Ebeling
Many Social Democrats believed that democracy was both compatible with and an essential complement to a humane socialism, a socialism that did not reduce humanity to obedient cogs in a giant collectivist wheel directed by a “dictatorship of the proletariat.” They wanted socialism with traditional civil liberties, personal freedom and democratic politics.
American “progressives” portray themselves as “forward-looking,” advocates of a higher and better freedom than the traditional American conception of liberty as freedom from government coercion and control. In fact, they are the intellectual great-grandchildren of the “reactionary” nineteenth century Imperial German “Iron Chancellor,” Otto von Bismarck.
Keynesians never seem to learn. Every time an economy slows down or reverses gears and “goes negative,” in terms of growth and employment, their only answer is a call for “aggregate demand” stimulus and more government spending manipulation.
Financial markets in the United States and around the world are all waiting with “bated breath” for when the Federal Reserve modifies its “easy money” policy and starts to raise interest rates. No one, however, asks a simple question: Why is the American central bank in the interest rate setting business?
The Congressional Budget Office (CBO) reported in early May that for the month of April 2015 the Federal government ran a budget surplus, taking in more in taxes than it laid out in expenditures. Don’t be fooled by one month, especially when it was a month when people filed and pay their taxes. Government deficits and growing debt are on the horizon for as far as the human eye can predict.
Old fallacies never seem to die, they just fad away to reemerge once again later on. One such fallacy is that if there is significant unemployment and slow economic growth it must be due to not enough consumers’ spending in the economy, what Keynesian economists call a “failure of aggregate demand.”
The real purpose for his visit to Washington, D.C. and his address before Congress was to push for Congressional approval of the Trans-Pacific Partnership (TPP) between the U.S., Japan and 10 other nations (Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam). Meant to extend and widen trade and related commercial relationships between the participating countries, it is also been presented as a way for the U.S. to maintain his economic and political power in East Asia in the face of the rising influence of China in that part of the world.
You may not have noticed it when out buying things in the marketplace in the context of your personal budget, but according to the Wall Street Journal (April 24, 2015) the world is awash with too much stuff. We seemingly have too much of, well, almost everything: too many raw material commodities, too much capital, and too much labor. The world, claims the Journal, is suffering from global gluts.
In spite of the great advances in reducing poverty and increasing the freedom and dignity of hundreds of millions of people around the world, the political and cultural climate virtually everywhere around the world is one of anti-business and anti-capitalism.
April 15th is the day that every American is expected to have filed their federal income tax form. Some of us may have done it long before the deadline, some of us will wait until just before the stroke of midnight on April 15th, and some of us may be filing for extensions to defer the actual submission of the full set of income tax-related documents.
There was a time when the Supreme Court of the United States defended and upheld the Constitutional protections for economic liberty in America. This year marks the 80th anniversary of one of the Supreme Court’s finest hours, when it overturned Franklin Roosevelt’s agenda for economic fascism in the U.S.
Discrimination has become a “dirty word.” It has come to carry the “politically incorrect” connotation of prejudice, hatefulness, racism, and cruel intolerance towards others in society. There is only one problem: which one of us does not discriminate? Indeed, everything we do reflects discriminating choices and decisions.
We live in an era in which few can even conceive of a world without the welfare state. Who would care for the old? How would people provide for their medical needs? What would happen to the disadvantaged and needy that fell upon hard times? In fact, there were free market solutions and non-government answers to these questions long before the modern Big Government Welfare State.
A recently released report on the degree of confidence that Americans have in the country’s leading political and economic institutions showed that few of these institutions are held in high regard by the public.
We live in a time, as, indeed, mankind has lived already for along time, in which economic delusions, political demagoguery, and ideological deceptions abound due to the power lusting of those who wish to gain control of government to serve their own ends at others’ expense.
One of the great myths about the capitalist system is the presumption that businessmen make profits at the expense of the consumers and workers in society. Nothing could be further from the truth.
A little more than seventy years ago, on March 10, 1944, there appeared in Great Britain one of the most amazing and influential political books of the twentieth century, The Road to Serfdom by Friedrich A. Hayek, which forewarned of socialist trends in Britain and America that ran the danger of leading to tyranny if taken to their logical conclusions.