I wanted to do a follow up argument on the article about Milton Friedman to make some things clear. I think that overall, Milton Friedman was a positive influence on American economic policy. The Chicago School’s influence has been a net positive for the country. The Chicago School and the Austrian school agree on many things but, the differences are critical to economic understanding; they are not just some obscure disagreements by academia. I want to address these issues in order.
- The Chicago School has no concept of the Austrian Business Cycle Theory nor does it have any understanding of how booms and busts happen. In fact, according to the Chicago School, booms and busts should not happen at all because markets always level out naturally(which would likely be true if it was not for the Fed) according to their theory of “efficient market hypothesis” as can be seen here, here, and here. This is why all the Austrian Economists were able to see the bust of 2008 coming from miles away while the Chicago School economists did not have a clue even while it was happening. This can be seen in the first video in the previous article where the famous “Supply Sider”, Art Laffer, says that “no way a bust is coming”, the economy is good and monetary policy has been “great”. If Art Laffer’s statement does not make you question the Chicago School’s way of thinking then something is very wrong.
- The Chicago School’s cure for a depression is the exact same as that which the Keynesians’ and Ben Bernanke would come up with. Milton Friedman wrote that the problem during the Great Depression was that the Federal Reserve did not inflate enough. Well, Ben Bernanke has taken Milton Friedman’s message to heart and has put the printing presses into overdrive. Thank goodness we have such wise leaders running things or we would be in real trouble! Only recently have Chicago School economists started to question Ben Bernanke about low interest rates, not because they are inflationary but, because the inflation is extended for too long a time period, “mitigating its positive effects”.
- The Chicago School are inflationists to the very core and think that central banks should inflate at a steady rate of about 2% to 4% per annum. Not only are there many economic problems associated with this, such as a misallocation of resources but there are moral and practical implications as well. The moral implication is that inflation, even at 2%, redistributes wealth from the poor and the middle class to the rich. The practical implication is that trusting politicians and bankers with the moral fortitude to keep inflation at 2% is completely naive. Simply put, the short term political advantages to inflation are too tempting to pass up. This can be seen time and time again, especially in the last thirty years, where Greenspan inflated bubble after bubble because it was politically expedient.
- Lastly, the Chicago School is pretty much OK with central planning in a philosophical sense. Remember, their objections to government intervention into the free market are not out of a deep understanding of property rights, natural law, individual sovereignty or hostility to command and control economies but, because they generally think that most market intervention does not make the economy more efficient. The Chicago School’s obsession with “market efficiency” can be seen in all the other areas where they do support government involvement (like monopoly laws). This article expands upon it more but, basically if communist societies were more economically efficient, then the Chicago School economists would be theoretically in favor of them. Whether the idea of market efficiency is valid at all theoretically is a whole other question but, I think that Mises put that idea into the grave with his book Human Action.
Although the Chicago School has some positive influence in reducing regulation and promoting free trade, its deficiencies are now too glaring to ignore. It is also important to understand that the Chicago School rose to prominence not because of its intellectual merits but, because of the Keynesians’ complete inability to explain the stagflation of the 1970s. Long story short, the Chicago School was the only other game in town (the Austrian School was still obscure at the time).
In conclusion, I think that we are all very blessed to be living during a new revival of the Austrian School. So, if you liked reading Milton Friedman, you will love reading Mises, Hayek, and especially Rothbard.
Some really grand work on behalf of the owner of this site, absolutely outstanding content.
I like what you guys are up also. Such intelligent work and reporting! Keep up the superb works guys I have incorporated you guys to my blogroll. I think it will improve the value of my website
I discovered your blog site on google and check a few of your early posts. Continue to keep up the very good operate. I just additional up your RSS feed to my MSN News Reader. Seeking forward to reading more from you later on!…
You should take part in a contest for one of the best blogs on the web. I will recommend this site!
I don’t unremarkably comment but I gotta say thankyou for the post on this great one : D.
I like the helpful info you provide in your articles.
I’ll bookmark your weblog and check again here regularly.
I am quite certain I will learn a lot of new stuff right here!
Good luck for the next!
Feel free to visit my blog – dream kitchen
Hi there, for all time i used to check webpage posts here in the
early hours in the dawn, because i like to gain knowledge of more
and more.
Hi there! Would you mind if I share your blog with my zynga group?
There’s a lot of people that I think would really enjoy your content.
Please let me know. Many thanks
Also visit my web site … Traffic School texas
This is a good tip particularly to those fresh to the
blogosphere. Simple but very precise information?
Thank you for sharing this one. A must read post!
My website: 1800gemstandard.com
If you print often, maybe over and over again each day, you need to actually be mindful
of the sort of your cartridge you might be using. Alternative toner cartridges oftentimes expense
significantly a reduced amount of than individuals tailored for
each unit purchased through the vendor.
Eventually, electronics manufacturers started with the likelihood of automating domestic
microcontroller based devices.
my webpage – best treatment for ibs with diar
This is a topic that’s near to my heart… Many thanks!
Exactly where are your contact details though?
Look into my web blog: modern kitchen Design
Buy Viagra
These wonderfl devices work like a camera, a mini computer,
a MP3 player along with a gamig consoile whenever required.
Even a cheap printer could end up costing you more
over time if the ink cartridges are costly. Eventually, electronic
devices manufacturers started thinking about the probabilities of automating domestic microcontroller based devices.
Feel free to visit my web blog … Cartridgeon Wheels Reno
Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your
blog? My blog is in the exact same niche as yours and my users
would truly benefit from a lot of the information you provide here.
Please let me know if this alright with you. Thanks a lot!
Greetings I am so glad I found your web site, I really found you by error, while I was researching on Aol for something else, Nonetheless I am here now and would just like to say thank you for a incredible post and a all round thrilling blog (I also love the theme/design), I don’t have time to browse it all at the moment but I have saved it and also added in your RSS feeds, so when I have time I will be back to read much more, Please do keep up the awesome job.
Well I really liked reading it. This article procured by
you is very helpful for accurate planning.
Also visit my web site :: cabinet styles
These wonderfl devices work just like a photographic camera, a
mini computer, a MP3 player along with a gamig consoile whenever required.
Accsense Product Manager Dana Kennedy explains
his enthusiasm: “Increasingly we’re concentrating on expanding the capacity in our Accsense systems towards the market’s specific needs, in order that we’re now storing the servers ourselves and offering direct support. The graphic card is the most important feature of a gaming laptop while there is anything irritating than choppy graphics within a gaming session.
My web-site Cartridgeon Wheels Reno
i was wondering about that too. thank you so much.
Thanks for the good information
Odmiana pożyczki w placówce pozabankowej. Charakteryzuje się bardzo wysokim oprocentowaniem. Kredytobiorca powinien znać wartość RRSO, to znaczy rzeczywistą roczną stopę oprocentowania, w skład której wchodzi oprocentowanie, prowizje, a też pozostałe opłaty. chwilówki chwilówka [url=https://chwilowkionlinex.pl/]chwilówka[/url]
Oh my goodness! Amazing article dude! Many thanks,
However I am encountering issues with your RSS. I don’t understand
why I am unable to join it. Is there anyone else getting identical RSS problems?
Anyone who knows the solution can you kindly
respond? Thanx!!
Thanks for a marvelous posting! I genuinely enjoyed reading it,
you’re a great author. I will always bookmark your blog and will
often come back in the future. I want to encourage you
continue your great job, have a nice holiday weekend!
Your style is unique in comparison to other people I’ve read stuff from.
Many thanks for posting when you have the opportunity, Guess
I will just book mark this blog.
Hello there! I know this is somewhat off
topic but I was wondering which blog platform are you using for this website?
I’m getting sick and tired of WordPress because I’ve had problems with hackers and I’m
looking at options for another platform. I would be awesome if you could point me in the
direction of a good platform.
Good answer back in return of this difficulty with genuine arguments and explaining everything on the topic of that.
I love what you guys are usually up too. Such clever work and coverage!
Keep up the awesome works guys I’ve incorporated you
guys to blogroll.
Hi Dear, are you truly visiting this site daily, if so then you will without doubt obtain nice knowledge.
Its such as you read my mind! You appear to grasp so much
about this, such as you wrote the guide in it or something.
I think that you can do with a few percent to drive the message home
a little bit, but other than that, this is
magnificent blog. An excellent read. I’ll definitely be
back.
I am not sure where you are getting your info, but good topic.
I needs to spend some time learning more or understanding
more. Thanks for great info I was looking for this information for my mission.
I think that what you typed made a bunch of sense.
However, what about this? what if you were to write a
killer post title? I am not suggesting your content isn’t good,
but suppose you added a title that grabbed folk’s attention? I mean The Chicago School vs the Austrian Perspective Continued | FreedomOmaha.com is kinda boring.
You should glance at Yahoo’s home page and
note how they create post headlines to get people interested.
You might add a video or a related picture or two to grab
readers interested about everything’ve written. Just my opinion, it might bring your website a little livelier.
Do you have a spam issue on this website; I also am
a blogger, and I was wondering your situation; we have developed some nice procedures and we are
looking to exchange methods with other folks, be sure
to shoot me an email if interested.
you are in point of fact a good webmaster. The website
loading pace is amazing. It sort of feels that you are doing
any distinctive trick. Moreover, The contents are masterwork.
you have performed a wonderful process in this matter!
I know this if off topic but I’m looking into starting my own weblog
and was wondering what all is required to get setup? I’m
assuming having a blog like yours would cost a pretty penny?
I’m not very internet savvy so I’m not 100% positive. Any recommendations or advice would be greatly appreciated.
Appreciate it
Everything is very open with a clear explanation of the
challenges. It was truly informative. Your site is very helpful.
Thanks for sharing!
This paragraph provides clear idea in favor of the new visitors
of blogging, that genuinely how to do blogging and site-building.
Have you ever thought about creating an ebook or guest authoring on other
blogs? I have a blog based on the same subjects you discuss and
would love to have you share some stories/information. I know my readers would appreciate your work.
If you are even remotely interested, feel free to shoot me an email.
Hi everyone, it’s my first go to see at this web page, and post is in fact fruitful in favor of me, keep up posting these types of posts.
Also visit my webpage bet888 เครดิตฟรี
Greetings! This is my first comment here so I just wanted to give a quick shout
out and say I really enjoy reading through your blog posts.
Can you suggest any other blogs/websites/forums that deal with the same
topics? Appreciate it!
Wonderful goods from you, man. I’ve understand your stuff previous to and you are just too magnificent.
I really like what you’ve acquired here, really
like what you’re saying and the way in which you say it.
You make it entertaining and you still take care of to keep it smart.
I cant wait to read much more from you. This is really a wonderful website.
I’m extremely impressed with your writing skills and also with the layout on your weblog.
Is this a paid theme or did you customize it yourself?
Either way keep up the excellent quality writing, it is rare
to see a great blog like this one nowadays.
An outstanding share! I have just forwarded this onto a coworker who has been conducting a little research
on this. And he actually ordered me dinner simply because I found
it for him… lol. So allow me to reword this….
Thanks for the meal!! But yeah, thanks for spending time to
discuss this matter here on your internet site.
Great website! I am loving it!! Will be back later to read some more. I am taking your feeds also
Here is my web site http://tw.gs/Y3sdi5H
Thank you for the good writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! However, how can we communicate?
Also visit my web site; http://glhycy.com/?a%5B%5D=%3Ca+href%3Dhttps%3A%2F%2Flavelleregenerative.com%3ELavelle+Regenerative%3C%2Fa%3E%3Cmeta+http-equiv%3Drefresh+content%3D0%3Burl%3Dhttps%3A%2F%2Flavelleregenerative.com+%2F%3E
An outstanding share! I have just forwarded this
onto a friend who has been conducting a little homework on this.
And he in fact bought me breakfast because I discovered it for him…
lol. So let me reword this…. Thanks for the meal!!
But yeah, thanx for spending some time to talk about this
matter here on your blog.
I very thankful to find this internet site on bing, just what I was searching for 😀 besides saved to bookmarks.
Feel free to surf to my web-site http://subscribe.esetnod32.ru/bitrix/redirect.php?goto=http://kwslease.buzznerdtrucks.com/2017/10/12/kenworth-sales-company-charitable-contributions/
Hello.This article was extremely fascinating, especially since I was searching for thoughts on this topic last Thursday.
Great web site you have here.. It’s hard to find high quality writing like yours these days.
I really appreciate people like you! Take care!!
My coder is trying to convince me to move to .net from PHP. I have always disliked the idea because of the costs. But he’s tryiong none the less. I’ve been using WordPress on numerous websites for about a year and am anxious about switching to another platform. I have heard great things about blogengine.net. Is there a way I can transfer all my wordpress posts into it? Any help would be greatly appreciated!
Stop by my site :: https://qrlink.click/urenewskintagremovercost204447
Whoah this weblog is great i love studying your posts. Stay up the great paintings! You understand, lots of individuals are hunting around for this information, you could aid them greatly.
Also visit my website – https://carhistory.jp/maintenance/
Thanks , I’ve recently been searching for info approximately this topic for ages and yours is the greatest I’ve found out so far. However, what about the conclusion? Are you positive concerning the supply?
Also visit my website … http://.O.Rcu.Pineoxs.A.Pro.W***Doo.Fr@srv5.cineteck.net/phpinfo/?a%5B%5D=%3Ca+href%3Dhttps%3A%2F%2Fnexfanevo.net%3ENexFan+Evo+Reviews%3C%2Fa%3E%3Cmeta+http-equiv%3Drefresh+content%3D0%3Burl%3Dhttps%3A%2F%2Fnexfanevo.net+%2F%3E