The current debate over Greenspan’s policy failures misses the crucial question, writes Robert Blumen: Could anyone, no matter how capable and well-informed, successfully perform the job that he is supposed to do? Were his errors sins of incompetence? Could a better man than Greenspan have done a better job?
The idea of resorting to work and entrepreneurialism as a means to material well-being has historically become a poor second to the idea of acquiring resources through theft. This robbery is always most effectively perpetrated when disguised and when legally underwritten by the threat of political violence–-i.e., when it is committed by the State.
The trouble with lowering the interest rate, writes Frank Shostak, is not that the Fed may lose a tool to fight a further downturn; the problem is that a lower rate now will make things much worse rather than better. Fifty years of experience suggest it will set in motion a much more painful economic adjustment in the months ahead.
Newport, Rhode Island, is surely one of the most spectacular places in the United States, and, for what its amazing mansions of the Gilded Age represent, it should be considered the Mecca of American capitalist private wealth, suitable for pious pilgrimages of every sort.
Somehow, someway, it always comes back to the central bank. Alan Greenspan is letting it be known that rate cuts are not out of the question. The hint alone sent the financial markets soaring. Yet, writes Lew Rockwell, to attempt more artificial credit injections at this stage is extremely dangerous.
Let us repeat the following: Bill Clinton did not give us an era of permanent prosperity. Nor did his administration present the picture of "fiscal restraint." His administration created the economic boom that turned to bust, and now it is George Bush's turn to make a bad situation worse. William Anderson explains.
The combination of collapsed pensions and accounting scandal is operating like the collapse of a dam, unleashing a torrent, not of water, but of hatred--hatred of capitalism and its most visible and valuable representatives: big businessmen. George Reisman counters propaganda with analysis.
Special-interest-group pleading often tries to hide behind supposedly economic arguments. It is important to debunk such arguments as they arise so that the interest group politics can be seen for what it is. In the spirit of Bastiat's Economic Sophisms, Gene Callahan offers the following.
Contrary to popular thinking, the stock market does not have causative powers as far as economic activity is concerned. The prices of stocks only reflect individuals' assessments of economic reality. And while individuals can change their evaluations of economic facts, writes Frank Shostak, they cannot alter the facts themselves.
Errors are an inevitable part of human action, writes Gene Callahan. If the future were certain, we would not need to act. Yet many economic models assume all economic actors possess perfect information, all plans are coordinated, and all adjustments to new data are made instantly and without cost.
