April 2009Volume 59, 2009
APRIL 01, 2009 by PETER LEWIN
The current financial crisis has fueled a frenzied recycling of discredited Keynesian ideas. We are hearing again of the need for "public works," of the need to "stimulate" the economy. The Federal Reserve is frantically inflating the supply of money. We are laying the groundwork for a disaster reminiscent of the 1970s—if not worse.
APRIL 01, 2009 by MARIO RIZZO
The conventional macroeconomic diagnosis and proposed cures ignore many important structural or microeconomic factors.
APRIL 01, 2009 by LESS ANTMAN
One widely cited culprit for the 2008 financial crisis was a supposed decision by the U.S. government not to regulate a relatively new type of financial instrument known as a credit default swap (CDS). In fact, this so-called "failure to regulate" refers to regulations that prohibited public trading of these instruments, concentrated risk in a small number of large firms, and massively increased the probability of a financial disaster. To add to the irony, one of the government officials most responsible for these interventions, then-Federal Reserve Chairman Alan Greenspan, recently apologized for having had too much faith in the free market when he should have apologized for not having had enough.
Focusing on the macro.
APRIL 01, 2009 by ROGER W. GARRISON
Keynesian theory implies an inherent instability in market economies. Thus the theory cannot possibly explain how a healthy market economy functions—how the market process allows one kind of activity to be traded off against the other.
APRIL 01, 2009 by BENJAMIN POWELL
By most measures Somalia has improved living standards faster than the average sub-Saharan African country since the government of Siad Barre collapsed in the early 1990s.
APRIL 01, 2009 by E. FRANK STEPHENSON
The $700 billion that Americans spend annually to purchase oil from other countries (according to Pickens) is a price not a transfer. For the $700 billion we send to oil exporters, we get something in return—oil. Our receipt of millions of barrels of oil in exchange for that money is hardly a transfer. We receive a versatile commodity that can be used for everything from making plastics to fueling family vacations. The exporters receive the $700 billion that they can then use to purchase other goods and services.
Madoff's Scam Was Small Compared to U.S. Government's Two Ponzi Schemes
APRIL 01, 2009 by JOHN STOSSEL
Your Dollar Votes Always Count in the Free Market
APRIL 01, 2009 by WALTER E. WILLIAMS
APRIL 01, 2009 by GENNADY STOLYAROV II
Much of the prosperity of today's world arises from the division of labor. Globalization, by extending the market's scope to the entire world, enables the division of labor to become as developed as the current world population allows. However, to be truly in the interests of consumers and a boon to economic prosperity, globalization needs to occur spontaneously through the workings of the unhampered free market. Government attempts to meddle with this process—even with the sincere intent to facilitate or accelerate it—will only undermine its efficacy at benefiting us all.