Have We Outgrown Recessions?

Contrary to the accepted way of thinking, writes Frank Shostak, recessions are not negative growth in GDP for at least two consecutive quarters. Recessions, which are set in motion by a tight monetary stance of the central bank, are about the liquidations of activities that sprang up on the back of the previous loose monetary policies. Rather than paying attention to the so-called strength of real GDP to ascertain where the economy is heading, it will be more helpful to pay attention to the rate of growth of money supply.

A socialist learns economics (sort of)

Here is a fascinating account of how a journalist for a socialist newspaper ended up taking a class in economics—and learning more about the way the world works than he expected to. Austrians will note that most of his criticisms apply not to Austrian theory but to a narrow brand of Chicago-style theorizing. Still, one can expect that the writer would have had an even more negative view of the Austrian school and its policy radicalism.

Penn and Teller Send Recycling to the Dump

I’ve never had much use for Penn and Teller, a pair of comedians that I’ve seen from time to time on television and then have quickly turned off. But the other day, a reader of my blog, Mr. Robert Groot, a Canadian Ph.D. student, was kind enough to send me a link to their internet show on recycling.

I have to say that this show has made me a fan of theirs. It was a scathing critique of the illogic of recycling, done in a way that at times was hilarious.

The Conquest of the United States by Spain

The great sociologist William Graham Sumner explains how the imperialist wars result in the very opposite of their stated intentions. In this 1899 speech, he demonstrated how the ideals of the US were in danger of being displaced by the ideology the US was supposedly fighting. “We have beaten Spain in a military conflict, but we are submitting to be conquered by her on the field of ideas and policies. Expansionism and imperialism are nothing but the old philosophies of national prosperity which have brought Spain to where she now is. Those philosophies appeal to national vanity and national cupidity.... They are delusions, and they will lead us to ruin unless we are hardheaded enough to resist them.”

Let The Consumer Decide

This morning’s Wall Street Journal (Nov 24) has an op-ed by Henry Manne (Dean emeritus of the George Mason University School of Law) commenting on Milton Friedman. Now, hold your fire — I know Milton is not perfect in Austrian eyes (neither is Albert Schweitzer) Among other points, Manne comments on Friedman’s dislike of public corporations that strayed “off the reservation to join the altruists” — the question of corporate social responsibility. Milton frowned on such behavior, as you would expect.

The Québécois As A Nation

Prime Minister Stephen Harper took the historic step Wednesday of recognizing Quebeckers as a nation within Canada. On the floor of the House of Commons, Mr. Harper introduced a motion that “this House recognize that the Québécois form a nation within a united Canada.”

 Mr. Harper intervened before a Bloc Québécois motion that planned to force MPs to take a stand Thursday by asking whether they believed Quebeckers to be a nation.

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