Category Archives: Classical Economics

Art Laffer receives Presidential Medal of Freedom

Both of the following links were found at Powerline: Trump Gives World’s Worst Economist the Presidential Medal of Freedom and Trump is giving Arthur Laffer the Presidential Medal of Freedom. Economists aren’t smiling. These sour economic vandals. It’s not even … Continue reading

Posted in Classical Economics, Economics and economy | 4 Comments

Time to consider a different approach to economic management

I realise that the Coalition, being from the right side of the political divide, are supposed to know something about how to run an economy, but I fear the evidence is very thin on the ground. And I know the … Continue reading

Posted in Classical Economics, Economics and economy | 33 Comments

So you will know when they lower rates that it was a serious economic mistake

From America, a conclusion which applies here with even more force than there since rates in the US have been rising: Trump’s Keynesian Monetary Policy. The New York Times reported today on Trump’s advocacy of easy-money Keynesianism. President Trump on Friday called on … Continue reading

Posted in Classical Economics | 6 Comments

Keynes’s 1933 letter to Harlan McCracken

The letter you see I uncovered in 2008 in the Harlan Linneus McCracken Archive at Louisiana State University, which has now been published in the March 2019 issue of the Journal of the History of Economic Thought. It has already … Continue reading

Posted in Classical Economics | 10 Comments

Dan Mitchell says to stop worrying about the trade deficit

The text of the argument. A four minute video presentation.

Posted in Classical Economics, Rafe | 3 Comments

Classical economic theory presents perennial truths that economists once knew but have completely forgotten

The perfect statement of classical economic theory, from David Uren in The Australian today: Get used to the new normal – booming rates of growth are gone. Over the year to December, growth was only 2.3 per cent and, short … Continue reading

Posted in Classical Economics | 8 Comments

Free Market Economics vs Keynes

I realise how tedious all this maundering on about Keynesian economics is for some people, which I do go on about. But the thing is, you will not find this discussed anywhere else in the world. This is said more … Continue reading

Posted in Classical Economics, Economics and economy | 8 Comments

Classical economic theory and employment

At the very core of the classical arguments against public spending as a means to raise employment is John Stuart Mill’s 1848 Fourth Proposition on Capital: “Demand for commodities is not demand for labour”. There is no relationship between the … Continue reading

Posted in Classical Economics | 12 Comments

Dan Mitchell on the case for free trade

A canter through the recent studies and reports by our man in DC. And a youtube video to go with it.

Posted in Classical Economics | 12 Comments

President Trump is applying Say’s Law in managing the American economy

For almost everyone, Say’s Law is something they know nothing about, and especially among economists, who themselves not only do not know what Say’s Law is, but are taught that it is unambiguously wrong. But as the success of the … Continue reading

Posted in Classical Economics, Economics and economy | 15 Comments