Category Archives: Classical Economics

A tale of two airports

Government spending absorbs national saving. Unless those resources are used in a value-adding way, the economy becomes worse off rather than better off. Spending of itself is not the road to growth. Only spending that creates more value than is … Continue reading

Posted in Classical Economics, Economics and economy | 74 Comments

Government ‘investment’ does not equal growth

Since she hasn’t posted it herself, I thought I would bring forward Judy’s column from The Australian today which goes under the heading, Public spending won’t fuel the growth engine. I mention this on the same day as I have … Continue reading

Posted in Classical Economics | 31 Comments

Where are the critics of Keynes?

I put the following post up at the History of Economics list the other day because it exactly reflects a problem I am having. I am doing some work on Keynesian economics in the period following the Global Financial Crisis. … Continue reading

Posted in Classical Economics, Economics and economy | 57 Comments

“An economic crash with untold consequences for the world”

I realise I haven’t been haranguing you about the menace of Keynesian economics for a while so thought I’d remind you of its enduring horrors as there is unanimous agreement that Australia has to get its fiscal house in order. … Continue reading

Posted in Classical Economics, Economics and economy, International | 40 Comments

First use of AS and AD

A Canadian academic, Robin Neill, put the following question up on the Societies for the History of Economics (SHOE) list last night: Colleagues: Who and when was the terms “aggregate demand” and “aggregate supply” first used? I have now written … Continue reading

Posted in Classical Economics, Economics and economy | 4 Comments

The Road to Serfdom, 70 years on

On 10 March 1944 Friedrich Hayekʼs famed book, The Road to Serfdom, was published in England by Routledge Press, with an initial print run of 2,000 copies in a period of wartime paper rationing. In July of that year, Dymockʼs … Continue reading

Posted in Classical Economics, Economics and economy, Libertarians don't live by argument alone | 16 Comments

Note to “The Economist” – your solution is the very problem itself

I’ve just been reminded of an article from The Economist published 16 July 2009 titled, What went wrong with economics. Note that it is not a question but a statement. The Economist naturally has no clue being an ultra-Keynesian rag … Continue reading

Posted in Classical Economics, Economics and economy | 14 Comments

Classical economic theory and the modern world

A post in two sections. Section I The March issue of Quadrant has an article of mine which has just been put up online. In the magazine itself the title is, The Dangerous Return of Keynesian Economics – Five Years … Continue reading

Posted in Classical Economics, Economics and economy | 18 Comments

Out with the new and in with the old

Amongst the five things necessary to get the economy going was the recommendation to cut spending, which of course means cut government spending. But in a world of Y=C+I+G why would any government cut its own expenditure since it will … Continue reading

Posted in Classical Economics, Economics and economy | 29 Comments

If the SHOE fits

There has been a kind of hammer and tongs discussion at the Societies for the History of Economics (SHOE) website that began when I posted that the President of France had stated in support of a more “austerity”-oriented economic policy … Continue reading

Posted in Classical Economics, Economics and economy | 7 Comments