The Old Broken Window Myth … (sigh) … again

It’s not hard to find stories about how the recent tragic devastation in Japan is supposedly going to lead to growth and prosperity. That’s the old “destruction leads to profit and wealth” myth that has been resurrected more times than Count Dracula and is a cousin to the “government can stimulate the economy” and “government creates jobs” myths. In other […]

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Inflation, Part 1: The Evolution of Money – Both Real Money and Funny Money

In order to understand inflation, we must first understand money. Trouble is, we don’t, so, time after time, we fall for the same old Keynesian schemes. As a result, we become poorer year after year, while people we don’t even know steal, via inflation, our asset values from us and effectively loot our retirement accounts. The following explanation of the […]

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Fallacy: Government Spending and Deficits Stimulate the Economy

The following article originally appeared in Newsbusters Magazine here. Fallacy: Government Spending and Deficits Stimulate the Economy Milton Friedman An increase in government spending clearly benefits the individuals who receive the additional spending. Considered by itself, it looks as if the additional spending is a stimulus to the economy. But that is hardly the end of the story. We have […]

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