Economic Doctors Have Misdiagnosed the Economy

Boy is that ever true.

Many people have only just now begun to get “above water” on their homes. Many still aren’t. Many people are still under employed. Many more people are working multiple jobs – people who once were solidly in the middle class with one job. Many people haven’t gotten back to anything like pre-Crash life. There is still a long way to go until this country is back to where it should be economically.

Clinton downplayed this economic uncertainty.

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Central Planners Freaking Out about Discussion of Gold’s Role

By Clint Siegner, Money Metals Exchange

Sound money issues make for good politics these days. The leading Republican candidates have all suggested reforms to our monetary system. The topic is popping up in debates as well as interviews. Predictably, Fed worshippers and proponents of central planning everywhere are snickering and trotting out the usual responses.

Michael Hiltzik, with the Los Angeles Times,

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What a 16th Century Frenchman Has to Teach Us Today About Crony Capitalism

Do we want sustainability? Yes, real, not fake sustainability.

Many economists today do not have kind words for Michel de Montaigne, one of the most famous authors of all time, but not much of an economist.

Economist Ludwig von Mises coined the term “Montaigne Fallacy” to describe the famous 16th century French essayist’s blunder in describing market transactions as inherently exploitative. Mises’s student Murray Rothbard similarly took Montaigne to the woodshed in his History of Economic Thought.

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Get ready to pay A LOT more for health insurance (Like 40% more for some people, because of Obamacare)


Hayek had a name for the hubris which clings to big government planners like herpes – “the pretense of knowledge.

Planners always think they can plan large social experiments, but experience has shown us over and over and over, from the Soviet Union, to France, to Britain, to North Korea, to the United States, they just can not. Obamacare is just the latest example.

20%-40% increases because, surprise surprise the people who signed up for Obamacare are sicker than the planners planned and fewer healthy people signed up than the planners planned.

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May I Have This Dance?: Presidential candidates consider who will advise them on the economy

If one wants to be an economics superstar there seem to be 4 routes. 1. Win a Nobel Prize. 2. Write a book which is widely read by politicians and the intelligentsia. 3. Just produce excellent work, toil in obscurity, and then have your ideas championed by someone or group with the means to champion someone. 4. Become a presidential advisor.

I am sure that there are other routes too. Becoming a TV personality comes to mind but I can’t think of any economists who have or have had shows of note.

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Do Economists “Know” That Personal Tax Rates Don’t Matter for the Economy?

Here is what Business Week writer Brendan Greeley tells us about the effect of personal taxes on our economy: “Economists have known for a while that personal marginal tax rates, and in particular those on the rich, don’t seem to have much of an effect on the economy.”

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Senator Durbin: No One Disagrees With Bernanke’s Premise

The article below describes Fed Chairman Ben Bernanke’s recent testimony in the Senate, the gist of which was that raising taxes or cutting federal spending now could send the economy into a tailspin that the Federal Reserve could not prevent. Senator Dick Durban, D-Ill, responded that “There is no one who disagrees with his premise,” meaning that no one thinks getting the US government’s finances back into order soon is a good idea. The worst part of this statement is that Durbin probably means it.

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