While the facts (as we know them today) of the Enron debacle are easily available in most newspapers and on the Internet, they are accompanied by a number of myths that are being spawned by politicians and their media allies. William Anderson tackles a few of these economic and political "old wives' tales" and helps set the record straight.
The significance of Jesús Huerta de Soto's new 681-page book, Dinero, crédito bancario y ciclos económicos (Money, bank credit, and business cycles), is precisely that it is the first Misesian treatise on money and banking to appear since the publication of Mises's original work, Theory of Money and Credit, eighty-eight years ago. De Soto's work is the most comprehensive analysis of fractional-reserve banking and of business cycles in print.
Ludwig von Mises was correct to observe that "the great creative genius who perpetuates himself in immortal works and deeds does not when working distinguish the pain from the pleasure. For such men creation is at once the greatest joy and the bitterest torment, an inner necessity." It is also true that intellectual promise can degenerate into arrogance, narcissism, and paranoia, such that genius becomes drivel, as is the case with Nobel Prize-winning economist and mathematician John Nash.
In most cases, it is difficult to rein in a government's spending and taxing. It is the nature of government to expand its functions and imposts, even if there is no mandate to do it. This is the nature of democracy today, tomorrow, and yesterday. Any tax or office--no matter how ridiculous or cumbersome--will always find pals in Congress.
Edmund Burke was born in Dublin on this day--January 12--some 273 years ago. He is often called the father of conservatism, but the central passion throughout his writings and speeches is opposition to arbitrary power, especially in the hands of the government, with its "officious, universal interference" in people's lives.
It occurred me last weekend that children should not grow up without a thorough exposure to the great cartoon from 1962, "The Jetsons." Its celebration of technology and commerce, its retro-style optimism, its hilarious dovetailing of bourgeois normalcy with gizmo-crazed futurism, its complete absence of political correctness (excluding, of course, the atrocious 1990 movie by the same name) – all combine to make this one of the great cartoon achievements of any time.
In its original meaning, "crisis" signifies a turning point that can either lead to improvement and recovery or to more severe deterioration. In the case of Argentina, with the future of the Argentinean people in mind, one must hope for the abandonment of its interventionist economic system, with its reliance on a bureaucratic apparatus and its self-chosen dependency on foreign credits.
Wilhelm Röpke made it his life's work to help construct and defend the free society, to diagnose the ills of capitalism, and to suggest concrete solutions. Röpke was never shy about criticizing the abuses of the body politic which endangered its health and rendered it defenseless against infections from the far Right and far Left. Röpke favored untrammeled free trade, regional liberties, and respect for traditional peoples and ways of life.
When individuals are not owners of resources, they are not able to assess their value; and when resources are publicly owned, their use will be systematically hasty and imprudent. When we realize that public ownership leads to systematic haste and imprudence, we get a hint that the inability of assessing the value of resources has deleterious consequences for most of us, with no one to blame except perhaps those who insist on keeping the institution of public ownership in force.
After laboring mightily and giving birth to the 2001-2002 federal budget, politicians returned home for the holidays, where they spent much of their time emphasizing their role in bringing home the bacon to those local interests who benefit. But as Congress returns to "the work of the people" in a midterm election year, it is worth remembering that not one cent of the funding came from anyone except taxpayers.
