A contributing problem of the 1990s economic boom was ideological, and it is one that still persists in the aftermath, writes Christopher Mayer. It was a cultural error that made a hero out of a Fed Chairman and that put so much faith in the Fed to begin with, at the expense of sound economics.
In deciding whether to wage war against yet another regime that has fallen into disfavor with DC, the United States must make some hard choices. Gregory Bresiger asks: will we follow the traditions of George Washington or those of Woodrow Wilson? "War," wrote Mises, "is harmful not only to the conquered but to the conqueror."
It is natural that liberty and peace go together, writes Lew Rockwell. Liberty makes it possible for people from different religious traditions and cultural backgrounds to find common ground. Commerce is the great mechanism that permits cooperation amidst radical diversity. It is also the basis for the working out of the brotherhood of man. Trade is the key to peace. It allows us to think and act both locally and globally.
The anticipation surrounding the new movie "Gods and Generals" underscores the continuing fascination that Americans (and the world) have with the meaning of the Civil War. What continues to be missed are the economic roots of the North-South conflict—roots which represent deviations from the free-trade ideal.
In tough times, people cling to the words of politicians and the statements of TV's talking heads—the two sources least likely to offer a broad perspective that yields answers. Jeffrey Tucker recommends five books for a clear a historical perspective, a theoretical explanation, a forecast for the future, and an agenda for change.
Benjamin Franklin made clear the ultimate intended result of America's experiment in liberty, when he said, "God grant that not only the love of liberty but a thorough knowledge of the rights of man may pervade all the nations of the earth, so that a philosopher may set his foot anywhere on its surface and say: This is my country."
It is debatable whether Bush should be intervening in the admission standards of one Michigan College. But it is perfectly apparent that he should do something to restore a free market in labor in his own neck of the woods. As might be expected, Bush intervenes where he either can't or should not, but doesn't intervene to restore freedom where he can and should.
Contrary to Keynesian dreams, there are several undeniable realities of a recessionary environment, writes Lew Rockwell. Wages tend to fall. Businesses tend to be liquidated. Resources are withdrawn from investment and put into savings. Consumers spend less. Stock prices fall. All of these tendencies may seem regrettable but they are necessary to bring all sectors back into realistic balance with each other.
The litany is familiar to anyone who knows of the history of the Great Depression: miscalculation, overtaxation, keeping wages and benefits high, prevent the liquidation, boost consumer demand, run up public debt. Fritz Machlup said that this is the path to impoverishment, notes Sean Corrigan.
Rothbard makes sense of these complex events in American banking history--power struggles, recessions, foreign relations--wielding the principles of monetary theory and Austrian business cycle theory, which he explains very well, on the run. Joseph Stromberg reviews A History of Money and Banking in the United States.
