We are still experiencing an economic crisis (stagflation? Lawrence White's book, written by guest reviewer David Weinberger , helps to explain why 20th-century economists speak so much about reconciling the contradictions of the 20th century with modern economic ideas. ... և Which of the following (և best) answers can be found?
"Conflict of economic ideas." The best book to understand our business environment
Guest comment by David Weinberger
A few business books can be read today, let alone the most interesting ones, but both are Lawrence White Economic Conflict (2012). The major political debates of the last century are a reflection of the economists who created them, and therefore provide an important context for understanding the current state of the economy.
A few business books can be read today, let alone the most interesting ones, but both are Lawrence White Economic Conflict (2012). The major political debates of the last century are a reflection of the economists who created them, and therefore provide an important context for understanding the current state of the economy.
For example, what has kept economists away from free market thinking? Contrary to many people's beliefs, this was not a major economic downturn. Dr. White explains that in the late 19th century, two ideas emerged. First a political movement known as "Progress" and then a movement known as the "German Historical School". Together, they have developed a belief that "scholars" or self-proclaimed leaders should use the government to control the lives of others in the new "scientific" way. In addition, the earlier forms of Marxism and socialism pleased scholars at this time. Interestingly, by the end of the 20th century, federal power in the United States had expanded significantly through laws such as the Sherman Anti-Trust Act, the Hepburn Law , the Federal Reserve Act, and the Federal Revenue Act. Tax. [And here in New Zealand, non-liberal liberals, under the influence of Pamper Reeves, enthusiastically built the first Labor Party and then created New Zealand charities.]
In addition, increasing the power of the government is not limited to these countries. The major powers of the world have mobilized their economies in a more destructive way. The tragedy of Soviet communism is well known. Little is known about the economic history of Nazi Germany. Much of the book is about how the German National Socialist Workers' Party (Nazi) took control of Hitler's economy, including financial control. Centralized "four-year plan"; National Agricultural Policy; Import quotas; Price և Salary control; Rationality; Decisions that determine the quantity of products produced by companies. Simply put, Third Reich was not a free market friend.
A.D. However, the naked FC Hayek, the new best-selling "captive road", came out to counter this misconception. Together with others, including Milton Friedman and Carl Popper, he founded the Mont Peller Coalition in 1947 to reorganize the Free Classic "Classical Economic Principles" and exposed the insanity.
Based on the ideas of older economists such as Ludwig von Mies, one of the arguments against centralism is that government planners have an "unsolvable problem". In a free economy, companies plan based on market information, which is determined by companies and entrepreneurs. If a company is planning a project that does not cover the cost and profit of the resource, then the result of this project, the final product or service, is not enough for users to evaluate the use of those resources. Cost, business should not continue. This profit or loss calculation is very important for planning growth, both for individual organizations and for the economy, the absence of which is the source of the central planning error. When market prices are low, central planners are unaware that their plans will not be able to cover their expenses, which has resulted in a waste of resources and resources that do not even produce basic commodities such as food. As a result, widespread famine in the Communist regime.
Also, consider the fate of the consumer in each of these cases. We often hear that companies under capitalism "exploit" customers, but the reality is that consumers are ultimately under control in a bankrupt economy. They are the ones who determine the price of a product, not the other way around. Businesses make a living by producing the products and services that their customers want, which is why there is a need for price indicators, because even small businesses can survive and fall. In Communism, on the contrary, consumers are caught up in vain, state programmers do not face the consequences of exploitation, they consume resources recklessly. They are the ones who decide what resources are created and how much, not the needs of the customer.
White is good at solving such problems, including the Keynesian / Fischer fiscal intervention that still haunts us today; Over the last hundred years. It is worth reading.
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