Monday, January 12, 2009

"The Wisdom of Henry Hazlitt"

***Mr. Samuelson once said, “I don’t care who writes a nation’s laws or crafts its advanced treaties, if I can write its economics textbooks.”

The coming stimulus bill, warts and all, will demonstrate brilliantly what he had in mind.***


I've been in somewhat of a baffling conundrum of late. I'm flabbergasted at many actions taken by the American state and by policy recommendations made by Harvard economists such as Professor Martin Feldstein, and of course, Lord Keynes eery disciple who's crusade against capital savings is startling. Our very own Nobel Laureate has not been silent on the matter either, but at least he's straight out, blunt about the blizzard we've consumed ourselves in. The latter video features him in a rare office hours. Ha! The Austrians, Ron Paul and Peter Schiff have spoken out against them. I'm not going to link you, they're on this site's new YouTube hoster, right there ------->

Secondtier's latest entry speaks of Harvard University Professor N. Gregory Mankiw, who points out that perhaps Rahm Emanuel's comments on the incoming administration ambitions are not that dissimilar to the outgoing one. This of course comes to no surprise, as both parties are in essence, identical when it comes to their faith in government's ability to work miracles.

For all of Professor Mankiw's studies in contemporary matters of scarcity and choice, his knowledge of Keynes (whom he references periodically throughout the article) and of the Great Depression, he knows very little of economics. Keynes was meticulously refuted by Henry Hazlitt in the 1950's. A brilliant contribution oversighted by nearly everyone. However, he makes an interesting comment towards the end of his treatise on Keynes. He writes that he personally believes that Keynes, being an outspoken elitist and master of rhetoric, may have simply concocted the general theory as a mere mockery or wordplay, to defy the laws of nature and economics and attempt to fool the masses, much in the manner of H.L. Mencken. Perhaps, he simply went along with the popular surge afterwards. This may also add to an explaination why Nobel Laureate Friedrich August von Hayek, Lord Keynes ideological, Austrian counterweight at the London School of Economics, never wrote a counter-treatise.

"I always felt like much of Keynes works was easily refutable by mere common sense; there was no reason for me to refute it at the time being. I did not feel it necessary to refure such ludicracy..."

- F.A. Hayek

1 comment:

Thomas St. Peter said...

On the picture, who is the man on the right?