Category Archives: Classical Economics

The difference between Keynesian and classical economics

Posted a few days back on Quora in answer to the question: What is the difference between Keynesian and classical economics? There are 13 other replies which not much more than prove to me that no one without a truly … Continue reading

Posted in Classical Economics, Economics and economy | 9 Comments

Economic theory is all right in theory

“Every economic answer is a political question.” Here then is a question for all you experts on international trade, taken directly from my Free Market Economics [pp. 248-249]. Picture two countries, A and C. Suppose in Country A, in one … Continue reading

Posted in Classical Economics, Economics and economy | 149 Comments

Beyond Economics 101

This post on Economics 101 reminds me yet again how useless modern economic theory is at working through almost any economic issue at all. It’s about the theory of comparative advantage, I think, and the role of free trade in … Continue reading

Posted in Classical Economics, Economics and economy, Market Economy | 27 Comments

There are Keynesians in even the most unlikely places

This is from, of all places, Maurice Newman’s article in The Oz today on Trump’s news might be bad for his forgotten flock. So which is the absolutely wrong word in this passage? Despite a decade of easy money, continued … Continue reading

Posted in Classical Economics, Economics and economy | 8 Comments

To understand how an economy works you need to understand classical economic theory

So long as Keynesian economics remains the mainstream, there is no possibility of taking down the crony capitalist system of economic mis-management that is at the heart of modern policy. Because Keynesian theory is the mainstream which everyone learns, economists … Continue reading

Posted in Classical Economics | 6 Comments

Classical economic theory and the American recovery

UPDATE ABOVE: Birthday pressies from the family who seem to know me quite well. Modern economics explains to governments how they and their crony capitalist mates can steal from you while pretending they are doing you good. And before we … Continue reading

Posted in American politics, Classical Economics, Economics and economy | 29 Comments

Economic theory and junk science

You may have heard me mention once or twice before that Keynesian economics is junk science, but just in case you missed it I am going to mention it again. What has brought all this to mind is reading the … Continue reading

Posted in Classical Economics | 35 Comments

A brutal reminder of macroeconomic incompetence

The GFC was over with in 2009 and now we are at the end of 2017. So what are we to make of this, other than they have no clue what’s gone wrong:Brutal reminder of GFC still here, Treasury says, … Continue reading

Posted in Classical Economics, Economics and economy | 45 Comments

“In case you are not familiar with Kates . . .”

The video is Economics for Independent Thinkers which discusses the way economics is discussed outside the mainstream. There are many many reason for watching the above video from end to end, but this especially works for me, starting at around … Continue reading

Posted in Classical Economics, Economics and economy | 8 Comments

Mill’s lost ‘supply-side’ perspective has now been found

Here’s the subhead to an article on the editorial page of the AFR today with the title: Job creators don’t need subsidy. The billions spent on industry support seems to make very little difference to new job creation. This is … Continue reading

Posted in Classical Economics, Economics and economy | 11 Comments