The crisis has given rise to a range of new ideas and theories to replace the discredited view of the economy. The newest and most imaginative of these is known as Modern Monetary Theory (MMT) and is one of the first theories to owe its growth to the internet. Without a doubt MMT is radical and completely turns established economic thinking on its head. If it is correct then it would change the way we think about the economy forever.
Continue reading “What Is Modern Monetary Theory?”
There is no such thing as a free lunch . . . except for free trade which makes everyone everywhere better off
It is naive and foolish to imagine there is some magic pot of gold which will make us all magically richer . . . but competition magically makes everyone richer
As Adam Smith said, the “invisible hand” of the free market ensures everyone is best off . . . even though Smith never said that about the market but rather about protectionism.
We should never rely on one-size-fits-all solutions that don’t take account of the specifics of each case . . . and cut taxes in response to every problem
The government makes everything worse . . . which is why countries like Somalia which have no government are so much better off Continue reading “Conservative Logic”
Having money linked to a Gold Standard is an idea that almost every economist opposes. It is described as the economic equivalent of creationism and a major cause of the Great Depression. It is ignored by policymakers and no country has one anymore. Yet there is some support for it on the internet. It is one of Ron Paul’s main ideas in his campaign for the Presidency and is supported to some extent by Paul Ryan. The Republican platform promises a commission to consider reintroducing it. So what is a Gold Standard and why is it so bad? Continue reading “The Fool’s Gold Standard”