Posted on 07/26/2017 1:25:45 PM PDT by Academiadotorg
Last week, a dear friend of Accuracy in Academia, author M. Stanton Evans (1934-2015), would have turned 83. Although he focused most of his energies in his later years on researching and writing about the history of espionage and internal security in the United States, he had quite a background in economics as well, much to the benefit of his readers over the course of his career.
Indeed, he studied under the noted Austrian economist Ludwig von Mises. On at least half a dozen occasions, I heard him outline what he saw as five essentials for a functioning economy.
They are worth repeating here, particularly given our economic lives and times of late:
1.) Competitive entry
2.) Competitive pricing
3.) A stable currency
4.) Rule of law
5.) No more than half of the Gross Domestic Product devoted to government at all levels.
If you are doing a mental checklist on these, you might conclude, with some evidence, that we are failing this five-part test. Nevertheless, Evans was fond of occasionally using the example of the great novel A Tree Grows In Brooklyn wherein just a little bit of sunlight and rain allowed the object in the title to grow.
Yet and still, naysayers might object that the checklist is biased toward the right. Nonetheless, I heard Evans himself note at least once that in such a system there is room for a welfare state.
Arguably, for much of America’s history, there has been. Incidentally, I never heard him use the term capitalism. He always used the phrase free market.
Perhaps we should do the same, especially since that is what it is.
Malcolm A. Kline is the Executive Director of Accuracy in Academia. If you would like to comment on this article, e-mail mal.kline@academia.org.
FTA: “He always used the phrase free market.”
As should we all since “capitalism” as a word/concept is actually a construct of Karl Marx, father of communism. As such, we should reject the use of that language and the associated concepts so as to advance the free markets, free people conversation.
#1. Free the marketplace from government interference.
#2-#5. See #1.
ok you convinced me
“ok you convinced me”
Great - that’s two of us! What’s next, you ask?? Now, as Brain told Pinky, we take over the world!! (hope you get the reference - it was one of my son’s favorite cartoons 25 years ago)
1) Don’t elect Democrats
2) Don’t elect Democrats
3) Don’t elect Democrats
4) Don’t elect Democrats
5) Don’t elect Democrats
.
Well said, I will try to remember to replace one with the other.
Competitive Entry: The American market flourished for 180 years with high tariffs in place.
Competive Pricing: So we just need to lower the labor rate to match China’s $2 per day for a 12 hour day. Then our economy will be vibrant!!!
Stable Currency: Weren’t the Austrian School for a gold standards? Turns out the Federal reserve has maintained a currency that is far more stable than gold on a year to year fluctuation basis. If you look at it over 100 years, then the Fed’s money has lost a lot of value, but unless your are hiding cash in a mattress, that’s not as important as the year to year fluctuations in purchasing power. Under the gold standards we had major deflationary depressions every 20 years.
Rule of Law: who can argue with that. Governments define the rules of the market place. They also define the rules of international trade and there is no reason not to use that in our favor.
No more than half of GDP devoted to government. That seems excessively high as well as quite arbitrary.
Did any country ever adopt austrian economics. I think I remember one European country did, but quickly abandoned it.
#1. Free the marketplace from government interference and bailouts.
There, Jim. Fixed it.
good analysis, Danny.
I'll stick with free the marketplace from government interference.
bfl
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.