Some commentators have tried to revitalize the old Keynesian idea of the liquidity trap. Although the trap itself follows from the J.R. Hicks IS-LM analysis, the basic idea is borrowed from J.M. Keynes. In fact, Japan has not been been in such a trap in the years following 1990, and the whole idea of the trap is gravely flawed.
In democratic societies, elected political officials are the final arbiters of the government's marketplace do's and don'ts. Who elects these political officials? Surprise! The same people supposedly incapable of making informed decisions in the marketplace.
This book frightens me. The authors do not confine themselves to a justification of the American invasion of Iraq,
The Fed has announced that it will turn its attention from fighting inflation to fighting deflation. There are serious problems with this approach, writes Frank Shostak. There is nothing wrong with lower prices, and if currency depreciation could improve economic conditions, poverty would have been eradicated a long time ago. In fact, pumping the money supply even more could lead to all round economic devastation.
The web and print publications overflow with ideas on what kind of country Iraq ought to be and what the U.S. should do to bring it about. But let us not forget that self-government is a first principle of freedom. That cannot be achieved so long as the U.S. military is there. The U.S. has done enough damage to this poor country. The proper U.S. plan for Iraq consists of one priority: get out!
The experience of "regime change" in Iraq raises fundamental questions about political economy and philosophy. For example, the looting and vandalizing that occurred after the military defeat of the Saddam Hussein government in Baghdad has been cited as proof of the necessity of a state. Hans Hoppe refutes the idea.
Shopping at a mall, joining a country club, or working for a business are not rights. Remember that before you get angry at not being able to stay at the mall, not being able to play golf at Augusta, or not getting hired because you don't look the part. In order for something to be taken from you or denied to you, it must be yours in the first place.
There are clues and warnings, beyond mere contrarian instincts, that inflation will once again have her day. Inflation is a process that forcefully re-distributes wealth from one group to another. Prices do not change uniformly in this process, and those that get the new dollars before their costs have risen gain at the expense of those whose costs rise first.
The popular notion that an increase in the stock of money is socially and economically beneficial is one of the great fallacies of our time. It has lived on throughout the centuries, embraced by kings and presidents, politicians and businessmen. It has shattered numerous currencies, inflicted incalculable harm, and caused social and political upheavals.
Why did Hayek see the economy's capital structure as being so central to our understanding of industrial fluctuations? Just how did his ideas line up against those being developed by John Maynard Keynes? And why did Hayek eventually all but abandon the research program that had so energized him in those early years? Roger Garrison explains.
