Monday, May 24, 2010
Wednesday, May 19, 2010
Saturday, May 15, 2010
But this is not the type of situation in which we find ourselves today. Here people are not changing their underlying preferences in the same way as my example, above.
They are responding, partly, to the uncertainties, confusions, and delays in adjustments to distortions resulting from misguided monetary (and related policies -- Fannie Mae and Freddie Mac, etc.) that resulted in misdirections of resources and labor, and capital malinvestments.
(And, by the way, this is the context in which John Stuart Mill in his famous essay "On the Influence of Production on Consumption" restated Say's Law by introducing and viewing money as a commodity that is demanded, and for which there may be temporarily an increased demand relative to other commodities in the wake of the confusions and imbalances of an economic crisis.)
What needs "fixing" in this case, I would argue, is not an increase in money for people to hold, but the necessary price and wage and resource adjustments that will restore the balance and coordination so people can be reemployed, once again have profitable investment opportunities, etc., that have market-based possibility and sustainability.
Those are the "real" factors beneath the monetary surface, and manipulating the amount of money in the economy does does nothing, per se, to bring the economy back into order along the lines I've suggested.
As I said in my earlier comment, this merely runs the risk of superimposing new misdirections of resources, labor and capital on top of the prior ones that are still waiting for correction.
Pruning relatively less-efficient employees like clerks and travel agents, whose work can be done more cheaply by computers or workers abroad, makes American businesses more efficient. Year over year, productivity growth was at its highest level in over 50 years last quarter, pushing corporate profits to record highs and helping the economy grow...
Friday, May 14, 2010
Tuesday, May 11, 2010
Monday, May 10, 2010
Sunday, May 9, 2010
Former New Mexico Governor Gary Johnson visited Charleston, South Carolina last Tuesday and spoke to the Bastiat Society. Last night, Fox news aired an interview with Sean Hannity. It is on youtube. The first segment is here. The second segment is here. (HT to David Beito at Liberty and Power.)
Wednesday, May 5, 2010
The imposition of negative interest rates is one way to totally devastate the poor, pensioners, and all people on fixed income. A Keynesian sees this as the lesser of two evils – getting out of the deflation in Japan. Thrifty people who have provided for themselves and for their future should be punished: this is the world of Keynes.