Category: Free Market Economics

Why the West Developed – Less Militarism?

Why did the West develop economically much more quickly than other civilizations? Because the West demonstrated a lower time preference compared to these other people groups. This allowed the process of civilization to occur, a process marked by savings and capital accumulation. The higher a group’s time preference level, the more likely it was to […]

Foreign Aid to Africa: “Please Stop!”

Well-meaning Westerners have long supported their governments in sending foreign aid to poor countries, particularly those in Africa. What does Kenyan economist James Shikwati think about foreign aid to Africa? “For God’s sake, please just stop.” He told SPIEGEL that the good intentions of Western governments to eradicate poverty has been “damaging” his continent for […]

Wednesday May 8th, 2013 in Free Market Economics | No Comments »

Capital is Heterogeneous

Austrians look at capital in a more nuanced manner than do the Keynesians, who see capital as homogeneous and static. The production of capital is not static; it goes through several stages before offering an end-product for consumption. Before consumption, there is the retailing stage; further back is wholesaling; back further is manufacturing; then basic […]

Thursday September 20th, 2012 in Free Market Economics | No Comments »

“We are all Keynesians now”

Perhaps the most disturbing quote ever uttered by a US president. Richard Nixon announced on August 15, 1971 that the United States would not live up to its promise to deliver gold to foreign holders of US dollars. This was the third time the US government defaulted on this promise: Lincoln did it during the […]

Monday June 18th, 2012 in Free Market Economics | No Comments »

Keynes Admits the Inflation Racket

“Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society […]

Monday June 4th, 2012 in Free Market Economics | No Comments »

A Biblical Case of Unsound Money

Genesis 47:15: “So when the money failed in the land of Egypt and in the land of Canaan, all the Egyptians came to Joseph and said, ‘Give us bread, for why should we die in your presence? For the money has failed.” Apparently unsound money policies have been implemented throughout human history. Centrally-managed currencies fail.

Thursday May 3rd, 2012 in Free Market Economics | No Comments »

Thatcher’s Sin

Margaret Thatcher is today being blamed for the economic crisis because of the “selfishness” of her policies from 1979 to 1990. Yet the fact is that public spending (health and welfare) rose 32%. Her sin was to simultaniously increase the private sector at an even faster rate, making public increases less in comparison to private […]

Mainstream Argument Against the Federal Reserve

There is no reason to rail against the Federal Reserve because it is a secret conspiratorial entity. Of course it is secretive, but the case must be made out in the open against the statism that informs the Federal Reserve. What we are working against is an evil ideology, not some scary group of men […]

Thursday April 26th, 2012 in Free Market Economics | No Comments »

Coinage Act of 1792

The U.S. government used to actually care about counterfeit money. Now,  the Federal Reserve does it all the time. For example, they printed $3.3 trillion in the Fall of 2008 and injected it into the world monetary system. The Coinage Act of 1792 prescribed the death penalty for those who were guilty of counterfeiting the […]

Monday April 23rd, 2012 in Free Market Economics | No Comments »

Socialized Losses

Why do some large corporations support the Federal Reserve system? Privatized profits and socialized losses. When major losses occur, it is left up to third parties to make them up (That’s you and me).

Friday April 13th, 2012 in Free Market Economics | No Comments »