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A Rational Advocate
REASONED VIEWS ON ISSUES OF THE DAY
"The most formidable weapon against errors of any kind is reason"
 Thomas Paine - 1776

THE WORLD OF ECONOMICS
featuring MILTON FRIEDMAN
  • Reasoned Views on Economics
  • Articles "and More" by Noted Economists
  • Sources of Publications & Educational Material (links to)
  • Economic Snippets
  • click images for reviews and/or to buy books
    BOOKS ON ECONOMICS

    Capitalism and Freedom
    Milton Friedman


    Free to Choose
    Milton Friedman


    Monetary History
    Milton Friedman


    Money Mischief
    Milton Friedman


    Friedman and Galbraith
    Milton Friedman


    Road to Serfdom
    Friederich Hyack


    The Constitution of Liberty
    Friederich Hyack


    Law Legislation and Liberty
    Friederich Hyack


    The Wealth of Nations
    No book has done more to instruct, enlighten, and inform conservatives about economics than Adam Smith's classic


    Theory of Moral Sentiments
    Adam Smith


    On Moral Sentiments
    Adam Smith

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    FriedmanBookCoverFront (277K)
    Support independent publishing: Buy this book on Lulu.

    click on titles to read complete article

    The Denationalization of Money
    By Fredrich Hayek

    The back cover of this book provides a summary of its contents. Hayek's writing relates to completing removing the government from the creation of money. His proposal would eliminate that which is presently causing the world to implode economically and would include eliminating the trade imbalances with other countries. He relates to times in the history of banking where there was competition in the issuance of money that created more stability than government monopoly. Hayek is a Nobel Prize winner in economics and of a similar mind as Milton Friedman. He wrote many books and articles on economics before he died about 30+ years ago. His most famous is "The Road to Serfdom". ............

    denatmoneyhayek (663K)
     
    The President of General Electric, Jeffrey Immelt recently said the following in a letter to stockholders. This should scare the hell out of freedom loving Americans everywhere. But will it?  
     
         "We are in a recession and, at times like these, it is difficult to predict how bad and for how long. We are running GE to 'weather the cycle'. However, I believe we are going through more than a cycle. The global economy, and capitalism, will be reset in several important ways. The interaction between government and business will change forever. In a reset economy, the government will be a regulator; and also an industry policy champion, a financier, and a key partner."
     
          Corporate America appears to be on its way to becoming hung on the government narcotics being offered to them. Those duped by these words will rue the day they passively accepted them as a path to Utopia. Think about it, Public-Corporate partnerships cannot be partnerships because the government by its very nature will be in control. The shareholders interest will become subservient to the government. Socialism will take over. Goodbye American freedom!

    A PRIMER ON THE FEDERAL FUNDS RATE
    By Milton Friedman
    What kind of gobbledygook is this? How can the Fed“cut interest rates” by a mere pronouncement. Sounds like King Canute commanding the tide to stop coming in......

    See and Hear Milton Friedman
    Ways to Spend Money
    play video
     MILTON FRIEDMAN HONORED AT WHITE HOUSE
     President George W. Bush honors soon to be 90 years old Milton Friedman  for his Lifetime Achievements

    click on titles to read complete article
    What Every American Wants
    By Milton Friedman
    I have long said, "I never met a tax cut I didn't like" -- though I would go on to say that I like some better than others. The reason for my flat unhedged statement is neither the Keynesian attribution of an economic stimulus to a tax cut, which I believe is generally wrong, nor the supply-side attribution of favorable incentive effects to a tax cut, which I believe is generally correct. It is, rather, the effect of tax cuts on government spending......

    ARTICLES BY NOTED ECONOMISTS

    click on titles to read complete article

    THE LAFFER CURVE
    By Arthur B. Laffer
    The Laffer Curve illustrates the basic idea that changes in tax rates have two effects on tax revenues: the arithmetic effect and the economic effect. The arithmetic effect is simply that if tax rates are lowered, tax revenues (per dollar of tax base) will be lowered by the amount of the decrease in the rate. The reverse is true for an increase in tax rates. The economic effect, however, recognizes the positive impact that lower tax rates have on work, output, and employment— and thereby the tax base—by providing incentives to increase these activities. Raising tax rates has the opposite economic effect by penalizing participation in the taxed activities. The arithmetic effect always works in the opposite direction from the economic effect. Therefore, when the economic and the arithmetic effects of tax-rate changes are combined, the consequences of the change in tax rates on total tax revenues are no longer quite so obvious. .......

    BIG BUSINESS AND QUOTAS
    By Thomas Sowell  (townhall.com)
    Anyone who thinks that business is gung ho for the free market has just not been paying attention to business. Adam Smith knew better, back in the 18th century. Although he was the patron saint of capitalism, Smith was no fan of capitalists. Any policy advocated bybusinessmen, he said, "ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention."

    Building wealth
    Bruce Bartlett
     (TownHall.com)
    Recently, I discussed new IRS data showing that the share of total income going to the richest 400 individuals has increased. However, income is an imprecise measure of well-being. That is better measured by wealth. A new study by the Federal Reserve sheds important light on the distribution of wealth in the United States.....


    irontriangle (6K)
    Click for more
    Dwight D. Eisenhower, upon leaving the office of president in 1961, warned future generations against the dangers of a "military-industrial complex," and the "grave implications" of the "conjunction of an immense military establishment and a large arms industry." Wisdom of these comments has clearly been lost in the forty years since Ike left office. And the first step towards turning things around is understanding how we got here.

    NOTED QUOTATIONS

    John Maynard Keynes once said:

    "Nor shall the argument seem strange, that taxation would be so high as to defeat its object and that given sufficient time to gather the fruits, a reduction of taxation will run a better chance than an increase of balancing the budget. To take the opposite view today is to resemble a manufacturer who, running at a loss, decides to raise his price. And when his declining sales increase the loss, wrapping himself in the rectitude of plain arithmetic, decides that prudence requires him to raise the price still more. And who, when at last his account is balanced when naught on both sides is still found righteously declares that it would have been the act of a gamble to reduce the price when you were already making a loss."

    REASONED VIEWS ON ECONOMICS
    By A Rational Advocate

    click on titles to read complete essay
    KILLING THE GOOSE THAT LAYS THE GOLDEN EGG
    Posing the question - "what is the best way to increase tax revenue?" - there are some that would say that the simple answer is to increase tax rates especially on those earning higher incomes. Their reasoning being that this would obviously increase tax revenue since it would direct more of the taxpayers earnings to the government. In a world where the earnings were a constant then this might be true - but - earnings do not stay constant and are effected by what goes on in the country and world that affects the economy. The fact is that increasing the tax rate could decrease tax revenue if earnings taken out of the private sector caused business activity to decline that then diminished the earnings of business and individuals.

    Gov't Spending Not The Same As People Spending
    There are those who believe that to stimulate the economy it doesn’t matter whether it is the government or the people who spend for goods and services as long as the spending occurs. However, it does matter if one desires to stimulate the economy in a way that at least maintains the nation’s standard of living. Reason provides this conclusion...

    HOW TO PERMANENTLY STIMULATE THE ECONOMY
    Whenever our economy experiences a recession calls are made for fiscal action by the Executive and Legislative branches to stimulate it. Unfortunately the proposals that are proposed by those of different political persuasions fall far short of what is truly required for a variety of reasons. Narrowed, the reasons fall into two categories.....


    BECOME A VOLUNTARY TAXPAYER
    By John Linder (Member of Congress)
    In Robert Novak’s column on Thursday, May 31st, he mentioned a revolutionary new tax proposal called the FairTax. He cited the potential rewards of the FairTax as “immense”and described the "impressive starting support in Congress.”.....


    ECONOMIC SNIPPETS

    THE TRUTH ABOUT TAXES
    By Anonymous
    Let's put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for dinner. The bill for all ten comes to $100. They decide to pay their bill the way we they pay their respective taxes and do so in the following manner.

    The first four men-the poorest-pay nothing; The fifth pays $1: The sixth pays $3; The seventh $7; The eighth $12; The ninth $18. The tenth man-the richest-pays $59.

    That's what they decided to do. The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement-until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20." So now dinner for the ten only cost $80. The group still wanted to pay their bill the way we pay our taxes..(read more)..

    "Government spending and economic growth are actually the primary determinants of whether there will be a surplus or a deficit. If federal spending had risen no faster than the rate of inflation, there would have been surpluses in 28 of the 32 fiscal years since 1970."
    W. James Antle III

    A civil engineer, a chemist and an economist are traveling in the countryside. Weary, they stop at a small country inn. "I only have two rooms, so one of you will have to sleep in the barn," the innkeeper says. The civil engineer volunteers to sleep in the barn, goes outside, and the others go to bed.

    In a short time they're awakened by a knock. It's the engineer, who says, "There's a cow in that barn. I'm a Hindu, and it would offend my beliefs to sleep next to a sacred animal." The chemist says that, OK, he'll sleep in the barn. The others go back to bed.

    Soon they are again awakened by another knock. It's the chemist who says, "There's a pig in that barn. I'm Jewish, and cannot sleep next to an unclean animal." So the economist is sent to the barn. It's getting late, the others are very tired and soon fall asleep.

    Again they are awakened shortly by an even louder knocking. They open the door and are surprised by what they see: It's the cow and the pig!

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    wayworldworkds (71K)
    The Way the World Works
    Jude Wanniski and Robert Novak


    Fairness and Efficiency in The Flat Tax

    Robert Hall (Editor) Alvin Rabushka etc.


    The Flat Tax

    Dick Armey

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