If the process of creating more and more money by fiat (called inflation) goes on unchecked, as it did during the past decade, then not only does the value of money on the margin fall, but its growth triggers an unsustainable boom that ultimately collapses in a bust.
With all of the hype about Swine Flu coming into this country … one forgets that a worse malady, the “British Disease,” is being promoted by the Obama administration … If there ever an occasion to call out, “Not so fast, my friend,” it is this one.
If there is a real “market test” of economic theory, it is the test of accuracy. That academic economists are not willing to junk their Keynesian theories for something that really works is not “proof” that Keynes was right.
From the Fed to the staggering weight of government spending and debt, we can see that Progressivism truly has run its course. Unfortunately, while it runs its course, Progressivism also is running this country into the ground.
Krugman is right that economists “got it wrong.” However, it was not a religious belief in free markets that caused the trouble, but rather government intervention, something Krugman never seems to mention in any of his columns.
Contrary to what Automotive News breathlessly declared, the Cash program pretty much was what anyone with common sense and decent economic training could have predicted. It spurred sales for a while, but after the money dried up, so did the new car sales.
From an economic point of view, a scarce good is a scarce good, whether it is medical care or sirloin steak. The problem is that government has piled intervention on top of intervention, and driving up the costs and making care less available in the process.
Most people cannot fathom decoupling government control and medical care, as though cost-raising controls actually improve medical service. Yet if we wish to have innovative and affordable medical care, that is precisely what must be done.
While it appeared nearly three decades ago, nonetheless “7 Fallacies of Economics” is more relevant than ever, and I am going to spend the next seven weeks examining each of these fallacies. I’ll link each of them to current government policies to point out that not only are the fallacies still with us; they are being forced upon us, to the detriment of each person who reads these words. More...
[T]he conditions that gave the world the pandemic of 1918-1919 hardly exist today. The flu spread rapidly in the United States as crowded troop ships returning from Europe were packed with young men, giving rise to conditions that permitted the sickness to spread quickly.