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.
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.
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 “Paul Krugman and Detroit, Part 1” I discussed the New York Times columnist’s failure to understand why Detroit currently resembles the United States in Atlas Shrugged. But Krugman’s error[…]
Ongoing effective economic experiments among the 50 states are sharpening, and definitive results will pour out in the real world, editorial and opinion fallacies to the contrary notwithstanding. That sharpening[…]
NOTE: Part One of this series of posts can be found here. The top one percent of federal income taxpayers paid more than the bottom 95 percent, according to the[…]
Of course, Obama says he is for those things, but his actions work against all of them. Ben Franklin said, “Experience is a dear teacher, but fools will learn at[…]
While England may be in flames, and Greece, Spain, Italy, Portugal and Ireland stand on the precipice of default, there can be no question of the US’s grave (and worsening)[…]
YO! “The economy is US! It’s not a machine, you don’t need a mechanic. Put away the wrenches, the economy’s organic!” ____ As I go around the nation talking to[…]
The Second City, a famous improv troop from The Heartland Institute’s hometown of Chicago went to D.C. for Jon Stewart and Stephen Colbert’s “Rally To Restore Sanity And/Or Fear” to[…]