Where the Left Is Leading the World: Catastrophe
The storming of the Bastille, 14 July 1789 during the French Revolution Wikimedia Commons/Bibilothèque Nationale de France If you have read any of my posts and detected a somewhat gloomy … Read More
Search Results for: Adam Smith's Invisible Hand
The United States: An Exceptional Country?
The draft Declaration of Independence being presented to the Second Continental Congress by the five man drafting committee on June 28, 1776. The five men standing before the Chair are … Read More
Economics Is Mostly About Human Psychology
An African market: a place where economic balances are discovered Photo Credit: Freeimages.com/Stewart Aston Last night I was musing about how I could persuasively sell the idea that an economy’s functions … Read More
The Keynesian Emperors Have No New Clothes!
The Emperor has no new clothes! Image Credit: Wikimedia Commons/Vilhelm Pedersen (1820-1859) Given all their failures in suggesting successful economic policies around the world, one would have thought … Read More
The Thoughts that Haunt Me
A profligate government bureaucrat with you behind him! (c) Can Stock Photo More and more, the words haunting me are the ones I wrote in the final sentence of my … Read More
Economic Plans of Trump, Sanders, and Clinton Are Fantasies
Donald Trump, Hillary Clinton, and Bernie Sanders: A rogues gallery of economic ignorance Image Credits: Top Left to Right: Wikimedia Commons/Michael Vadon, Wikimedia Commons/Voice of America Bottom: Wikimedia Commons/Gage Skidmore … Read More
The Long-Term Economic Stagnation the World Faces
Alvin Hansen (1887-1975): Keynesian economist who invented the Keynesian idea of secular stagnation Photo Credit: Rugusavay.com Larry Summer’s project to revive Alvin Hansen’s idea of secular stagnation is gaining in … Read More
Compromise Between the Right and the Left
Compromise: Are our arms long enough to reach across the chasm? Image Credit: CanStockPhoto/photocreo A commenter on the post Economic Questions: Is Everyone Fooling Themselves? was concerned about the ability … Read More
The “Science” of Economics
A modern day view of economists. By Rembrandt – The Yorck Project: 10.000 Meisterwerke der Malerei. DVD-ROM, 2002. ISBN 3936122202. Distributed by DIRECTMEDIA Publishing GmbH., Public Domain, Wikimedia Commons The … Read More
Rational Expectations, Market Clearing, and Real Business Cycles
The University of Chicago, where much of New Classical Economics was built by Robert Lucas, Jr. Photo Credit: Wikimedia Commons In my last post I began an examination of what … Read More
Alternative to the Keynesians: New Classical Economics
Adam Smith (1723-1790), founder of classical economics, which has flowered into New Classical Economics Image Credit: Wikimedia Commons/By Unknown – http://www.nationalgalleries.org/object/PG 1472, Public Domain At this time in history, the … Read More
The Cultural Desirability of Capitalism
Greed – Is this all there is with capitalism? (c) Can Stock Photo This essay has been inspired by notions concerning capitalism I have heard or read from a number … Read More
Feedback Loops and Economic System States
Organization of a feedback loop Wikimedia Commons/Brews ohare – Own work My friend Chease has again proposed I consider a very interesting article concerning Adam Smith’s “Invisible Hand”. Last August … Read More
Meanings of the Word Capitalism
Idols of Capitalism in front of the Frankfurt Stock Exchange, Germany, a high temple of Capitalism Wikimedia Commons/Eva K. Since we looked at the various meanings people give to the … Read More
A Replacement for Keynesian Monetary Policy
How many of these should we make? Image Credit: Freeimages.com/Tracy Olson As the world confronts the smoking ruin of Keynesian monetary policy [see the posts Economic Damage Created … Read More
What to Do About Keynesian Secular Stagnation
“I’m here from the government, and I’m here to help!” Image Credit: FreeImages.com/Daniel Perry In the preceding post The Keynesian Excuse: Secular Stagnation, I described the Keynesian revival of the … Read More
The Rahn Curve, Hauser’s Law, the Laffer Curve and Flat Taxes
Hauser’s Curve Image Credit: Wikimedia Commons/Sugar-Baby-Love If you were to plot federal government tax revenues as a fraction of GDP versus time, … Read More
Failures of New Keynesian Economics
The wreck of an elegant model! Photo Credit: Flickr.com/Kevin Hutchinson The New Keynesian economics is such an elegant mental construct that it is … Read More
Blowing Up the New Keynesian Model
Demolition Explosion! Photo Credit: U.S. Department of Energy I am beginning to see suggestions that it is time to blow up New Keynesian economics to smithereens … Read More
The Trans-Pacific Partnership
Container ship from Asia Photo Credit: Flickr.com/Peter Kaminski Last Monday the United States and 11 other countries with shores on the Pacific Ocean reached … Read More
Monetary News from Jackson Hole
Grand Tetons at Jackson Hole, Wyoming Photo Credit: Freeimage.com/Jack Sanders A lot of vital news for the economy came out of two gatherings at Jackson Hole, Wyoming last weekend. … Read More
The Ideal Tax Regime – 1
Taxes are nothing but destructive to all parts of society with the exception of government and its employees. Unless you are obscenely rich or abjectly poor, you probably have your … Read More
The Ideal Monetary Policy
Decade after decade, the Federal Reserve, under its dual statutory mandates to minimize both inflation and unemployment, has favored the attack on unemployment over that of inflation. Depending on the … Read More
The Complexity of Reality
How arrogant people are who think they understand enough about a nation’s economy that they can control it! This thought came to me while thinking about the implicit assumptions progressives make. … Read More
Leftist Vs. Neoclassical Economics
In the modern western world most political conflicts involve aspects of economics, and the disagreements on economics are focused on the clash between Leftist, including Keynesian, and neoclassical economics. The posts … Read More
The Evolution of Modern Economic Theory
In order to understand why the Federal Reserve has chosen its policies of the past three decades, we need to understand the New Keynesians. The response by neoclassical economists to the … Read More
Echoes of the Great Depression: Europe
For all of my life the nations of Europe have been very much to the left of center. I suppose this condition is the legacy of dirigisme and socialism in France, Bismarck’s … Read More
Why Did the Great Depression Last So Long?
Because of the complexity of the Great Depression, there are several different ways in which you can date the beginning and ending of this immense event. Many people date the … Read More
The Keynesian- Neoclassical Ideological Conflict (2)
When we left this discussion, we had found that a Keynesian economist believes government stimulus spending must be used to kick-start (pump-prime?) the economy out of recession.
Neoclassical economists on the other hand believe care must be taken not to damage an already distressed economy further.
Laws of Economics
The Creators of Modern Economics Top: Adam Smith and J.B.Say Bottom: David Ricardo and Carl Menger. Because of their importance I am placing links to my posts on the … Read More