Global Economy

As with all economic calamities, pundits will find some way to blame the meltdown and collapse of Argentina on capitalism, deregulation, or the private sector generally. Such nonsense. This crisis is a product of government incompetence, made to order by the IMF, the Argentine political leadership, and the US. As a reminder that the choice of economic policy isn’t politically trivial, the government’s errors ended in hunger, bloodshed, and the resignation (and narrow escape) of the country’s president.

As the history of America's Great Depression is one long regret of political follies and blunders that aggravated the suffering, so is the story of the Japanese recession from the 1990s to the present.  The Japanese government tried to spend its way out of the recession, but instead merely prolonged it and created a mountain of debt.

There has been a lot of talk recently about foreigners who hate our prosperity and civilization, and seek ways to inflict violence in retaliation. Well, here is another case in point, except these are not swarthy Islamic terrorists; they are diplomats and statesmen on nobody's list of suspicious characters.

We tend to think of trade as low-grade war with winners and losers, but the reality is otherwise. A vibrant trade in agriculture with the Third World would mean that the masses of people in both the developed and developing worlds would benefit.

As America's economy continues to struggle in response to Federal Reserve policy during the 1990s, and as regulators are given free reign during wartime, China could be poised to overtake the U.S. as the world's leading economic superpower within the next ten to twenty years. 

Even without the war, we are doing everything wrong that the Hoover-Roosevelt-McDonald governments and the Strong-Norman bankers did in the 1930s, after their long decade of easy money and paper prosperity imploded under the weight of too much debt and too great a strain on real capital resources.

Had the United States pursued a policy of economic freedom with respect to energy production over the last thirty years, the conditions for OPEC’s success as a cartel would never have been present in the first place.

Capitalism is about “laboring the earth” more fruitfully so that fewer men go needy, so that the next fanatic finds less willing recruits, so that amid bustling commercial intercourse, barriers of class and race and ignorance are dissolved into mutual respect and benefit.

Why would some folks hate globalization as it is properly understood and conceived? Tibor Machan explains.  

It is the inevitable consequence of Fed interest-rate manipulations to disturb, disrupt, and disarrange economic activity, writes Hans Sennholz.