So you are a good free market Chicago School guy. You have rejected Keynesian economics in favor of the free market Chicago school. You have read Milton Friedman’s “Right to Choose” and you are convinced that the free market is the way to go.
Well, maybe he is not such a free market guy. He is, in fact, in favor of compulsory taxation, monopoly, price controls, and the welfare state. Milton Friedman proposed the tyrannical payroll deduction in the United Sates during WW2 and it has stuck with us like a curse ever since. He is against cartels in most areas except for money. Though Chicago School has done many positive things in promoting liberty, its faults are glaring and can no longer be ignored after September 2008. The Chicago School was fundamental in popularizing the idea that almost all government regulations are actually lobbied for and constructed by the industries that are to be regulated to push out competition and raise costs for new competitors entering the sector. This allows large firms to absorb regulatory costs while pushing out small businesses and new upstart companies. The term popularized by many from the Chicago school is “Cui Bono” or who benefits?. The Chicago School realized that in almost all cases, the big players in the industries being regulated are almost always the same beneficiaries of such regulations and are also the biggest pushers of regulation (just like today’s health care legislation and insurance companies.) Chicago School has written hundreds of books on almost every industry when making their case but have somehow missed the elephant in the room, the Federal Reserve. So the largest monopoly of all escapes all scrutiny from the Chicago School. Chicago School refuses to use this same method of “Cui Bono?” on the banking cartels that exist around the world in the form of Central Banks. This seems absurd when considering that all the shareholders of central banks are private and have enormous leverage in setting the price for money (the interest rate). So the Chicago School and Milton are completely inconsistent in their theories when it comes to money. They are for free competition in all fields except for banking, where the Chicago school supports government sponsered monopoly.
When it comes to methodology, the Chicago School is as bad if not worse than the Keynesians. The Chicago School and every other school of economic thought besides the Austrian School since the 1930s have viewed human beings as mathematical aggregates. That is to say, human beings are simply numbers to be put in mathematical formulas. The Austrian School completely rejects this because human beings are conscious actors that change their behaviors based on conditions. For example if you raise the income tax, some people will likely find other ways to generate income through investment or some other method. Therefore, human behavior and concious actors will change how much revenue will be brought in. All other schools of thought pretend that human behavior is for the most part unchanging and can be constructed as part of a mathematical formula. For example, if government action A is taken than B will be the result. Ludwig Von Mises established in “Human Action” that human behavior cannot be predicted and observed in the same way that hard sciences make predictions. All particles in the universe act in the same predictable way when a force is applied to them. This is not true with human behavior. When a new variable is applied to human interaction, humans will react in multiple different ways, each to achieve their own desired goals. Since economists can’t possibly know the goals and motives of every single person, it makes human beings almost impossible to predict the same way that chemists or other scientists make predictions with their respective studies. This puts economics closer to the field of sociology rather than a hard science, i.e. physics, that mainstream economists’ fantasize about making economics into. Human beings are conscious actors but the Chicago School’s methodology leads to many conclusions that are not logical because they often do not take this into account. Murray Rothbard gives the example of Milton Friedman’s negative income tax or guaranteed annual income. Rothbard argues that it is precisely because the welfare bureaucracy is so inefficient that the United Sates is not more bankrupt than it is. Friedman’s plan to make it more efficient by automatically sending out checks to anyone making below a certain income creates a hugely distorted incentive structure that is logically obvious but which Chicago School’s methodology seems unable to grasp.
Lastly if you still think that the Chicago School is free market consider this; Ben Bernanke is a student of the Chicago School, specifically Milton Friedman’s book on the Great Depression. Everything that Ben Bernanke has done has been lock step with what Milton Friedman had suggested should have been done during the Great Depression. Not one major economist from the Chicago School publicly protested against TARP or the mind boggling expansion of the money supply. The Chicago School has completely capitulated to the Keynesian world view and have shown their true colors. The only school of thought that has not been toppled in the wake of September 2008 has been the Austrian School.
Here Gary North goes into some of the intellectual history of economics. Additionally, Gary North makes the argument that the intervention of 2008 was so massive that it was arguably taken even further than anything that Milton Friedman would have suggested thirty years ago.
Here is another lecture comparing Milton Friedman to the Keynesian paradigm.
Here is an article about how mainstream conservatives and supply siders are Keynesian.
Very good post! We will be linking to this great post
on our website. Keep up the great writing.
It’s actually a nice and helpful piece of information. I’m glad that you simply shared this helpful info with us. Please stay us informed like this. Thanks for sharing.
erection pills cialis 20mg oral cialis 5mg tablet
buy avlosulfon 100mg sale buy avlosulfon 100mg generic aceon 8mg generic
After looking at a number of the blog articles on your site, I really like your way of blogging. I book marked it to my bookmark website list and will be checking back soon. Please check out my web site as well and let me know what you think.
buy fexofenadine 180mg for sale purchase amaryl pill glimepiride 1mg usa
Hey very nice blog!
Hey there are using WordPress for your blog platform? I’m new to the blog world but I’m trying to get started and create my own. Do you need any coding knowledge to make your own blog? Any help would be greatly appreciated!
buy hytrin without prescription order actos tadalafil 10mg tablet
etoricoxib 60mg oral purchase astelin online azelastine price
buy irbesartan 300mg sale buy buspirone 10mg online cheap buy cheap generic buspirone
order amiodarone 100mg online cheap carvedilol for sale online buy dilantin 100 mg pills
Hi Dear, are you actually visiting this website daily, if so then you will definitely get good experience.
It’s awesome in favor of me to have a website, which is valuable for my experience. thanks admin
buy albenza 400 mg for sale brand albendazole buy medroxyprogesterone 5mg without prescription
These are really enormous ideas in on the topic of blogging.
You have touched some good factors here. Any way
keep up wrinting.
Excellent write-up. I certainly love this website. Stick with it!
Having read this I thought it was extremely informative.
I appreciate you spending some time and energy to put this information together.
I once again find myself spending a lot of time both reading and
commenting. But so what, it was still worthwhile!
buy ditropan tablets buy alendronate 70mg online fosamax over the counter
I’m now not positive where you are getting your info, however good topic. I needs to spend a while learning more or understanding more. Thank you for great information I used to be looking for this information for my mission.
Superb site you have here but I was wanting to know if you knew of any community forums that cover the same topics talked about in this article? I’d really love to be a part of group where I can get opinions from other knowledgeable individuals that share the same interest. If you have any recommendations, please let me know. Bless you!
buy biltricide 600 mg generic hydrochlorothiazide 25 mg oral buy cyproheptadine 4mg without prescription
Ahaa, its fastidious discussion on the topic of
this post at this place at this webpage, I have read all that,
so now me also commenting at this place.
Great beat ! I would like to apprentice while you amend your website,
how can i subscribe for a blog web site? The account aided me a acceptable deal.
I had been tiny bit acquainted of this your broadcast provided bright
clear idea
Does your website have a contact page? I’m having problems locating it but, I’d like to send you an e-mail.
I’ve got some recommendations for your blog you might be interested in hearing.
Either way, great site and I look forward to seeing it expand over time.
macrodantin 100 mg generic furadantin 100mg usa buy generic nortriptyline 25 mg
Hi, i think that i saw you visited my blog so i got here to go back the want?.I am trying to in finding things to improve my website!I guess its good enough to use some of your ideas!!
As the admin of this site is working, no hesitation very quickly it will be famous, due to its quality contents.
buy luvox online cheap cheap luvox purchase cymbalta
Thanks for ones marvelous posting! I actually enjoyed reading it, you may be a great author. I will always bookmark your blog and will come back at some point. I want to encourage continue your great posts, have a nice morning!
anacin 500 mg for sale buy famotidine online cheap order famotidine 40mg online
Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates. I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.
oral glipizide order generic glucotrol 5mg brand betnovate 20gm
I like the valuable information you provide in your articles. I will bookmark your weblog and check again here frequently. I am quite certain I will learn plenty of new stuff right here! Good luck for the next!
clomipramine 50mg tablet progesterone for sale online buy progesterone 200mg generic
What’s Happening i’m new to this, I stumbled upon this I have found It positively helpful and it has helped me out loads. I am hoping to give a contribution & assist other users like its helped me. Good job.
prograf online remeron 30mg without prescription order requip 1mg generic
tinidazole order online order zyprexa 10mg pills order bystolic 20mg generic
The rats kept her up at night, and summers were spent being Гў eaten aliveГў by fleas best place to buy cialis online reviews
order calcitriol online fenofibrate for sale online order fenofibrate online
valsartan usa combivent 100mcg cost buy combivent pills
always i used to read smaller content that also clear their motive, and that is also happening with this piece of writing which I am reading at this time.
Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! By the way, how can we communicate?
Great blog here! Also your web site loads up very fast! What host are you using?
Can I get your affiliate link to your host? I wish my website loaded
up as quickly as yours lol
Heya! I know this is somewhat off-topic but I had to ask. Does operating a well-established blog like yours take a lot of work? I’m completely new to blogging but I do write in my diary everyday. I’d like to start a blog so I will be able to share my own experience and views online. Please let me know if you have any ideas or tips for new aspiring bloggers. Appreciate it!
This post gives clear idea designed for the new users of blogging, that actually how to do blogging and site-building.
Having read this I thought it was extremely informative. I appreciate you taking the time and effort to put this short article together. I once again find myself spending way too much time both reading and commenting. But so what, it was still worth it!
Having read this I thought it was very informative. I appreciate you finding the time and effort to put this informative article together. I once again find myself spending a significant amount of time both reading and leaving comments. But so what, it was still worth it!
Good way of explaining, and good post to take data about my presentation subject matter, which i am going to deliver in university.
Thank you a bunch for sharing this with all people you really recognise what you are talking approximately! Bookmarked. Please also seek advice from my site =). We may have a link exchange contract among us