Booms and Busts

Henry Hazlitt's The Failure of the New Economics remains the best criticism of J.M. Keynes's General Theory.

A recent CNN broadcast claimed that deflation was bad for the economy and that we need to adjust to higher prices. As usual, the journalistic “experts” got it backward.

Few economists—even the free-market advocates—understand what caused the Great Depression. No, the Fed didn’t cause the Depression by failing to inflate the currency. Instead, it was the Fed’s inflation that led to the disastrous early events.

Many of the high-flying businesses that received massive publicity turned out to be the creation of a bubble economy. Not all businesses are flashes in a pan; many of them continue to serve as the backbone of our economy.

President Nayib Bukele of El Salvador recently spoke at the Conservative Political Action

Far from being an “automatic stabilizer” that mitigates recessions by engaging in “countercyclical” spending, the welfare state actually makes recessions longer and deeper. Time to acknowledge that fact and do away with it altogether.

The Federal Reserve claims to be independent and politically neutral. But since its actions have political ramifications, it is impossible for the Fed to be either.

The United States survived the first Great Depression, although it permanently changed the role of government. Will excessive government spending and money creation lead to Great Depression II?

As the Fed engages in rollercoaster monetary policies, the errors that build up during the Fed-induced boom turn into a veritable “circus of errors.”

Stoked by ultra-loose monetary policy from the Federal Reserve, capital markets have been in a persistent bubble for several years.