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.
While economists speak of GDP as a legitimate measure of the economy, a closer look tells us that it is biased toward consumer spending and fails to give a true measure of the value of capital.
Because Keynesian theory has triumphed in the economics world, people are subject to the worst kind of government intervention in the economy. Debunking Keynes is the first step toward economic sanity.
When an economy suffers a recession, some factors of production, such as labor, become unemployed. Keynesians believe that expanding credit and fiat money will bring back full employment. That's not how an economy works.
When an economy suffers a recession, some factors of production, such as labor, become unemployed. Keynesians believe that expanding credit and fiat money will bring back full employment. That's not how an economy works.
Tyler Cowen joins Bob to discuss his latest book on who is the Greatest of All Time in Economics.
Econometric models are constructed with the idea that they can be substituted for authentic human action. Not surprisingly, they fail badly.
Advocates of unbacked paper money claim that theirs is the “civilized” choice, as opposed to gold, or what Keynes called “that barbarous relic.” These inflationists, however, are the ones wrecking civilization as we have known it.
Econometric models are constructed with the idea that they can be substituted for authentic human action. Not surprisingly, they fail badly.
Advocates of unbacked paper money claim that theirs is the “civilized” choice, as opposed to gold, or what Keynes called “that barbarous relic.” These inflationists, however, are the ones wrecking civilization as we have known it.
