Austrian economics

Articles of Interest

25 random things about covering a capital murder trial. Wichita Eagle reporter Ron Sylvester offers surprising insights into covering a capital murder trial in a small Kansas city. The Misdirection of Resources and the Current Recession. From a talk given by Mario J. Rizzo. "I believe that recent experience supports the claim that the economist and political philosopher Friedrich Hayek made in The Road to Serfdom in 1944. Democracy and central planning are incompatible or, at least, in deep tension." Also some good explanation of the cause of the crisis from an Austrian perspective. Evidence against the multiplier (Russell Roberts…
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An Austrian Recommendation for President Obama

Robert P. Murphy, author of the fine book The Politically Incorrect Guide to Capitalism lays out what President Obama and Congress can do to really fix our economy. In this article, Murphy addresses the critics of those who oppose the proposed stimulus plan. That's important, because many critics of the stimulus say that the government should do nothing. But doing nothing doesn't satisfy the feeling that something has to be done. So Murphy has a list of things to do. Also, Murphy explains, in one paragraph, the Austrian diagnosis of why there's a problem. It's an excellent article, available at…
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The bailout reader

The events taking place in the financial market offer an illustration of the soundness of the Austrian theory of money, banking, and credit cycles, and Mises.org, which has long warned of precisely the scenario playing itself out today, is your source not only for analysis of these events but also the economic theory that helps explain what is happening and what to do about it. There are many thousands of articles available, and also the full text of thousands of books as well as journal articles. The Bailout Reader at the Ludwig von Mises Institute continues to be the best…
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I Tested My Politics

I came across a test designed to place you and your political thoughts on a map of political ideologies. The test I took is here. These tests can be fun, but in the case of this particular example, I wondered how some questions had any relevance to politics. In these tests I also find that some questions are leading and seem to be designed to get people to answer a certain way. On this test, here are the results reported for me: "You are a Social Liberal (76% permissive) and an Economic Conservative (93% permissive). You are best described as…
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The New Deal in Retrospect

Many people refer to incoming president Barack Obama as the next FDR. The myth of Franklin Roosevelt -- primarily that he cured the Great Depression through his extreme interventionism -- is starting to be exposed. In this review (The Disaster Called the New Deal) of Burton Folsom's book New Deal or Raw Deal? How FDR's Economic Legacy Has Damaged America, David Gordon of the Ludwig von Mises Institute shows us the good and bad. Did the New Deal cure unemployment? "In May 1939, Treasury Secretary Henry J. Morgenthau Jr., one of Franklin Roosevelt's best friends, testified before the House Ways…
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Ron Paul says “The Austrians were right”

In a statement Ron Paul delivered to the United States House of Representatives on November 20, 2008, he made these points: Our government is "totally influenced by Keynesian economics." "At least 90% of the cause for the financial crisis can be laid at the doorstep of the Federal Reserve. It is the manipulation of credit, the money supply, and interest rates that caused the various bubbles to form. " The Federal Reserve created this problem. Why do we rely on it to fix the mess it created? "... the stage is now set for massive nationalization of the financial system…
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Walter Block on Economics in One Lesson

Walter Block talks about Economics in One Lesson, perhaps the most approachable book about economics. And, it's a free-market, liberty-friendly, Austrian approach. What could be better? In this video, Professor Block is interviewed by Jeffrey Tucker at the Ludwig von Mises Institute.
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The Austrian Prescription for Today

Murray N. Rothbard, in his book For a New Liberty: The Libertarian Manifesto, wrote a chapter that is highly relevant to the situation we face today. Unfortunately, if Rothbard's analysis of the business cycle using Austrian economics is correct -- and I believe it is -- what's going on presently in Washington, and what president-elect Barack Obama is planning, will do much more harm than good. The chapter's title is "Inflation and the Business Cycle: The Collapse of the Keynesian Paradigm." In it, Rothbard explains the flaws in the Keynesian theory of the business cycle. This theory -- in spite…
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Why Austrian Economics Matters More Than Ever

Here's a talk recently delivered by Lew Rockwell, president of the Ludwig von Mises Institute. This organization remains the best place to learn about why our economy is in such trouble. The full speech can be read at Why Austrian Economics Matters More Than Ever. An excerpt: I report on this not so that we can say "We told you so," but rather to underscore the need to stick to principle, depart from the crowd, avoid the fashion, and adhere to the truth no matter what. This is what Mises taught us, and if he had done nothing more than…
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The Bailout Reader

The Ludwig von Mises Institute has compiled The Bailout Reader, a collection of articles relevant to the current situation. Not all these articles are from the past few weeks, as Austrian economists have long understood the dangers of government interventionism, the fruits of which we see today. The events taking place in the financial market offer an illustration of the soundness of the Austrian theory of money, banking, and credit cycles, and Mises.org is your source not only for analysis of these events but also the economic theory that helps explain what is happening and what to do about it.…
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