Milton Friedman corrects the record on the cause of the Great Depression. Debunking the myth that is what from high speculation on wall street. Milton Friedman was an American economist who received the 1976 Nobel Memorial Prize in Economic Sciences.
But it’s easier than acting like responsible adults
I saw this article yesterday, and thought it looked suspicious. Rather than go blind with despair over the NYT’s familiar habit going into battle facing the wrong way, I hoped Kevin Williamson might be scanning skies above Gotham, see the Bat signal, and make an appearance. My wish is granted:
Kevin D. Williamson writes: The New York Times has published a very interesting article forwarding a number of familiar arguments that the Federal Reserve should try to increase inflation in order to encourage economic growth. Without going too deeply into the fallacies behind the idea that higher inflation is a means to strong and sustained economic growth, it is worthwhile to examine the wishful thinking and euphemisms that inform the Times’s account.
Item 1: “Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly.”
Let’s take a look at these claims in order. Read the rest of this entry »