MODERN POLITICAL ECONOMY

A New Gold Coin Standard

2010-10-16T07:42:00.001-07:00

Austrian Business Cycle Theory/ Roger Garrison

2010-10-11T13:05:00.000-07:00

DEBATE: Schiff vs Epstein

2010-10-04T05:16:00.000-07:00

Peter Schiff on the Economy

2010-09-29T08:24:00.000-07:00

IMMORAL MONEY CREATION

2010-09-24T19:22:00.000-07:00

NBER Says Recession Is Over

2010-09-20T08:54:00.001-07:00

Raico on Net Private Domestic Investment

2010-09-20T08:49:00.000-07:00

Ron Paul on Austrian Economics

2010-09-20T08:38:00.000-07:00

Financial Crisis And Recession

2010-09-16T09:57:00.001-07:00

Economic Analysis By Doug Casey

2010-09-05T08:06:00.000-07:00

Destroying The Middle Class

2010-09-05T07:35:00.001-07:00

How Hyperinflation Will Happen

2010-09-04T09:37:00.001-07:00

The Economics And Ethics Of Private Property

2010-09-01T09:09:00.000-07:00

The Pretense of Knowledge

2010-08-29T10:24:00.000-07:00

An Angry Look At Modern Schooling

2010-08-28T09:19:00.001-07:00

The Rise, Fall, and Renaissance of Classical Liberalism

2010-08-27T20:03:00.000-07:00

Banking

2010-08-25T20:57:00.001-07:00

Entrepreneurship

2010-08-25T20:55:00.000-07:00

Austrian Theory Of The Trade Cycle

2010-08-25T19:53:00.000-07:00

The State's "Inception" Fails

2010-08-21T06:10:00.000-07:00

10 Signs The US Is Becoming A Third World Country

2010-08-17T11:22:00.000-07:00

The Anatomy Of The State

2010-08-16T07:14:00.000-07:00

Keynesians In Retreat?

2010-08-14T06:31:00.000-07:00

For A New Liberty

2010-08-13T12:25:00.000-07:00

"Stuff" Does Not Equal Wealth

2010-08-11T08:17:00.000-07:00

The Cultural And Spiritual Legacy Of Fiat Inflation

2010-08-10T12:20:00.000-07:00

unemployment rates across the country

2010-07-27T14:02:00.001-07:00

Blog Organization

2010-06-01T05:27:00.000-07:00

An understanding and appreciation of basic economic principles should be a prerequisite for participating in debates about social organization and policies. It is also very helpful in planning your personal finances to achieve your goals.

Economics does not exist in a vacuum. It is woven into a social fabric which includes psychology, philosophy, and law. It is not about numbers or graphs. It consists of understanding the consequences of our actions, both long run and short run, seen and unseen, for all and not just a few. It helps in understanding the past and planning for the future. And of course it is just plain fun to apply economic tools toward achieving a deeper understanding of economic problems.

First read the flagship essays 1.00, 2.00, 3.00, 4.00, and 5.00. Then fill in the gaps with a good economics course and a thoughtful reading of the other articles. The journey starts here. Hope to see you along the way.

"The body of economic knowledge is an essential element in the structure of human civilization; it is the foundation upon which modern industrialism and all moral, intellectual, techological, and therapeutical achievements of the last centuries have been built. It rests with men whether they will make the proper use of the rich treasure with which this knowledge provides them or whether they will leave it unused. But if they fail to take the best advantage of it and disregard its teachings and warnings, they will not annul economics; they will stamp out society and the human race."

Ludwig von Mises, HUMAN ACTION (1949)

1.00 - 1.99..... HISTORY (facts from the past)

2.00 - 2.99..... LAW, POLITICAL PHILOSOPHY, POLITICS (rules and rulers)

3.00 - 3.99..... AUSTRIAN ECONOMICS (how the system works)

4.00 - 4.99..... COMPLEXITY THEORY (out of control but well organized)

5.00 - 5.99..... EVOLUTIONARY PSYCHOLOGY (the hard wired human brain)

THE HISTORY OF FREEDOM IN ANTIQUITY (1.00)

2010-05-26T23:02:00.002-07:00

Discussion Questions:

1) What is "liberty"? What is "natural order"?

2) Is liberty a natural condition like, for example, mortality?

Murray Rothbard on the Founding of the Fed (1.01)

2010-05-26T23:01:00.000-07:00

Discussion Question:

1) According to Rothbard what was the original purpose of the Federal Reserve System?

When Frankie Met Johnny (1.02)

2010-05-26T23:00:00.001-07:00

Tom DiLorenzo on Abraham Lincoln (1.03)

2010-05-26T22:59:00.001-07:00

The Origins Of Nullification (1.04)

2010-05-26T22:58:00.001-07:00

False Virtue (1.05)

2010-05-26T22:57:00.000-07:00

The Western State As A Paradigm (1.06)

2010-05-26T22:56:00.000-07:00

"Civil Rights" and Total War (1.07)

2010-05-26T22:55:00.000-07:00

What Is Classical Liberalism? (1.08)

2010-05-26T22:54:00.002-07:00

Mercantilism In England (1.09)

2010-05-26T22:52:00.000-07:00

Theodore Roosevelt And The Modern Presidency (1.10)

2010-05-26T22:51:00.000-07:00

The Road To Serfdom (1.11)

2010-05-26T22:50:00.000-07:00

Hazlitt's Battle With Bretton Woods (1.12)

2010-05-26T22:49:00.000-07:00

Inflating War (1.13)

2010-05-26T22:48:00.001-07:00

THE LAW (2.00)

2010-05-26T22:30:00.000-07:00

On Property and Exploitation (2.03)

2010-05-26T22:27:00.000-07:00

Political Economy of Monarchy and Democracy (2.04)

2010-05-26T22:26:00.000-07:00

Natural Law and Natural Rights (2.06)

2010-05-26T22:24:00.000-07:00

The Myth That Justice Is Blind! (2.08)

2010-05-26T22:22:00.000-07:00

Every Crime Needs a Victim (2.09)

2010-05-26T22:21:00.000-07:00

Property Rights, Liberty, and Immigration (2.10)

2010-05-26T22:20:00.000-07:00

The Constitution Does Not Protect Our Property (2.11)

2010-05-26T22:19:00.000-07:00

The Freedom of Association (2.12)

2010-05-26T22:18:00.000-07:00

Internet Kill Switch? (2.13)

2010-05-26T22:17:00.001-07:00

Constitutional Chaos (2.14)

2010-05-26T22:16:00.000-07:00

An Economic Case For Immigration (2.15)

2010-05-26T22:15:00.000-07:00

America's Ruling Class--And The Perils Of Revolution (2.16)

2010-05-26T22:14:00.000-07:00

Digital Education vs. The Ruling Elite (2.17)

2010-05-26T22:13:00.000-07:00

WHAT IS AUSTRIAN ECONOMICS (3.00)

2010-05-26T22:00:00.001-07:00

War and Inflation: Financing the Empire ( 3.01)

2010-05-26T21:59:00.000-07:00

Where Is The Economic Recovery? (3.02)

2010-05-26T21:57:00.000-07:00

Was Keynes A Liberal? (3.03)

2010-05-26T21:56:00.000-07:00

Intervention And Economic Crisis (3.04)

2010-05-26T21:55:00.000-07:00

On Auditing The Fed (3.05)

2010-05-26T21:54:00.000-07:00

Dangerfield's First Economics Class (3.06)

2010-05-26T21:53:00.000-07:00

Sell In May And Run Away.......Fast (3.07)

2010-05-26T21:52:00.000-07:00

John Williams Says (3.08)

2010-05-26T21:51:00.000-07:00

Go to http://shadowstats.com for more from John Williams.

Economics In One Lesson (3.09)

2010-05-26T21:50:00.001-07:00

Recession, Depression, or Systemic Breakdown (3.10)

2010-05-26T21:49:00.001-07:00

Rothbard's Legacy (3.11)

2010-05-26T21:48:00.000-07:00

Intro to Econ (3.12)

2010-05-26T21:47:00.000-07:00

The Fractional Reserve Banking Question (3.14)

2010-05-26T21:45:00.000-07:00

A Gold Economy Begins (3.15)

2010-05-26T21:44:00.000-07:00

Economics is Hard, says PhD (3.16)

2010-05-26T21:43:00.000-07:00

http://www.lewrockwell.com/daughty/mogambo61.1.html

Read this also.

Vulgar Keynesianism (3.17)

2010-05-26T21:42:00.000-07:00

Investing In Stocks And Bonds (3.18)

2010-05-26T21:41:00.000-07:00

Austrian Money Supply (3.19)

2010-05-26T21:40:00.000-07:00

Bonds And The Fading Recovery (3.20)

2010-05-26T21:39:00.000-07:00

A World Currency For World Trade (3.21)

2010-05-26T21:38:00.000-07:00

What Has Government Done To Our Money ? (3.22)

2010-05-26T21:37:00.000-07:00

COMPLEX ADAPTIVE SYSTEMS (4.00)

2010-05-26T19:35:00.000-07:00

I, iPhone (4.01)

2010-05-26T19:34:00.000-07:00

For Discussion:

Relate the essay "I,Pencil" to the reading on complexity theory (4.0).

Consuming Our Capital (4.02)

2010-05-26T19:33:00.000-07:00

Fable Of The Bees (4.03)

2010-05-26T19:32:00.001-07:00

What Is Seen And What Is Not Seen (4.04)

2010-05-26T19:31:00.000-07:00

The Use Of Knowledge In Society (4.05)

2010-05-26T19:30:00.000-07:00

Defending The Miser (4.07)

2010-05-26T19:28:00.000-07:00

The Coming Economic Catastrophe (4.08)

2010-05-26T19:27:00.001-07:00

Against School (4.09)

2010-05-26T19:26:00.000-07:00

Save The Virgins (4.10)

2010-05-26T19:25:00.000-07:00

EVOLUTIONARY PSYCHOLOGY: A PRIMER (5.00)

2010-05-26T19:04:00.000-07:00

War And Human Nature (5.01)

2010-05-26T19:03:00.000-07:00

5.01

Sympathy Deformed (5.02)

2010-05-26T19:02:00.001-07:00

The Four Temperaments (5.04)

2010-05-26T19:00:00.000-07:00

Reference Books

2010-05-26T17:26:00.000-07:00

These are some of the books that helped form my opinions about political economy. You can purchase them or just read about them on amazon.com.

COMPLEXITY THEORY

1) COMPLEXITY: The Emerging Science At The Edge of Order and Chaos, by
M.Mitchell Waldrop.
2) CHAOS: Making A New Science, by James Gleick
3) CONFEDERATES IN THE BOARDROOM: How the principles of confederation are
rejunenating business and challenging bureaucracy, by Mike Tuggle
4) BOUNDARIES OF ORDER: Private Property as a Social System, by Butlet Shaffer
5) THE FATAL CONCEIT: The Errors of Socialism, by F.A. Hayek
6) BIONOMICS: Economy As Ecosystem, by Michael Rothschild
7) PLANNED CHAOS, by Ludwig von Mises
8) CHAOS, MANAGEMENT AND ECONOMICS: The Implications of Non-Linear Thinking,
by, David Parker and Ralph Stacey

EVOLUTIONARY PSYCHOLOGY

1) MISTAKES WERE MADE: (but not by me), by Carol Tavris and Ellito Aronson
2) THE MORAL ANIMAL: Why We Are The Way We Are; The New Science of Evolutionary
Psychology, by Robert Wright
3) CHIMPANZEE POLITICS: Power and Sex Among Apes, by Frans de Waal
4) THE ORIGINS OF VIRTUE: Human Instincts And The Evolution of Cooperation, by Matt
Ridley
5) GOOD NATURED: The Origins Of Right And Wrong In Humans And Other Animals, by
Frans de Waal
6) PORTRAITS OF TEMPERAMENT, by David Keirsey
7) ENVY: A Theory of Social Behavior, by Helmut Schoeck

HISTORY

1) AN ESSAY ON THE HISTORY OF CIVIL SOCIETY, by Adam Ferguson
2) THE GOD OF THE MACHINE, by Isabel Paterson
3) THE WORLDLY PHILOSOPHERS: The Lives, Times and Ideas of the Great Economic
Thinkers, by Robert Heilbroner
4) THE THEME IS FREEDOM: Religion, Politics, and the American Tradition, by M.
Stanton Evans
5) FOR GOOD AND EVIL: The Impact of Taxes on the Course of Civilization by Charles
Adams
6) HOW THE WEST GREW RICH: The Economic Transformation of the Industrial World by
Nathan Rosenberg and L.E. Birdzell, Jr.
7) MAKERS AND TAKERS: How Wealth And Progress Are Made And How They Are Taken
Away Or Prevented, by Edmund Contoski
8) THE NOBLEST TRIUMPH: Property And Prosperity Through The Ages, by Tom Bethell
9) THE REAL LINCOLN: A New Look At Abrahan Lincoln, His Agenda, And An
Unnecessary War, by Thomas J. DiLorenzo
10) EMANCIPATING SLAVES, ENSLAVING FREE MEN: A History of the American Civil War,
by Jeffrey Rogers Hummel
11) THE HISTORY OF FREEDOM, by John Emerich Edward Dalberg Acton
12) THE DISCOVERY OF FREEDOM: Man's Struggle Against Authority, by Rose Wilder Lane
13) THE POLITICALLY INCORRECT GUIDE TO AMERICAN HISTORY, by Thomas E. Woods, Jr.
14) TRUST: The Social Virtues And The Creation of Prosperity

AUSTRIAN ECONOMICS

1) ECONOMICS IN ONE LESSON, by Henry Hazlitt
2) 15 GREAT AUSTRIAN ECONOMISTS, edited with an Introduction by Randall G. Holcombe
3) THE MYSTERY OF BANKING, by Murray N. Rothbard
4) HOW AN ECONOMY GROWS: And Why It Crashes, by Peter D. Schiff and Andrew J Schiff
5) ECONOMICS FOR REAL PEOPLE: An Introduction to the Austrian School, 2nd edition, by Gene Callahan
6) END THE FED, by Ron Paul
7) ECONOMICS ON TRIAL: Lies, Myths, and Realities, by Mark Skousen

LAW, POLITICAL PHILOSOPHY, and POLITICS

1) THE ROAD TO SERFDOM, by F.A. Hayek
2) FOR A NEW LIBERTY: The Libertarian Manifesto, by Murray N. Rothbard.
3) THE LAW, by Frederic Bastiat
4) THE PRINCE, by Niccolo Machiavelli
5) THE COMMUNIST MANIFESTO, by Karl Marx and Friedrich Engels
6) THE POLITICALLY INCORRECT GUIDE TO THE CONSTITUTION,
by Kevin R.C. Gutzman
7) LOST RIGHTS: The Destruction of American Liberty, by James Bovard
8) EGALITARIANISM AS A REVOLT AGAINST NATURE: And Other Essays, by Murray N. Rothbard
9) HEALING OUR WORLD: In An Age Of Aggression, by Dr. Mary J. Ruwart
10)THE ETHICS OF LIBERTY, by Murray N. Rothbard

THE UNCLE ERIC SERIES, by Richard J. Maybury

EXAM QUESTIONS I and II

2010-05-26T17:25:00.000-07:00

EXAM 1

1)Discuss the relationship between economics and evolutionary psychology.

2)Use the concept of complex adaptive systems to explain how ground traffic is organized.

3)Present an example of absolute and comparative advantage. Show how the terms of trade are determined.

4)Use a production possibilities curve to demonstrate the difference between unemployment, full employment, and economic growth. What is opportunity cost? Give an example using the PPC.

5)What is money? What does money have to do with specialization and trade? Distinquish between a gold standard and a fiat money standard. What is the primary argument in favor of the former?

6)Contrast the major "schools" of economic thought. Define paradigm shift, cognitive dissonance, and confirmation bias.

7)Use supply and demand curves to demonstrate the concepts of equilibrium price, shortage, and surplus.

8)Use supply and demand curves to contrast the "rationing effect" and the "signaling effect".

9)Use a graph to contrast changes in "quantity demanded and supplied" vs changes in "demand and supply".

10)Use a three market model to show how information is transmitted throughout the price system.

11)Name four ways to "own" property. What is the relationship between secure property rights and prosperity?

12)Discuss four ways to present models and the "Rodney Dangerfield" problem.

13)How do prices coordinate economic activity? Discuss the problem of price controls in terms of the complexity model.

14)Discuss the four components of GDP. What is the difference between current dollar and constant dollar GDP?

15)Discuss how the unemployment rate and the consumer price index are calculated. Contrast unemployment and inflation as macroeconomic problems.

16)Use a diagram to discuss the business cycle. Include information about the most recent peaks and troughs.

17)Define the marginal propensities to consume and save. How are they related? Give an example of the "multipler effect".

18)What is a "deflationary gap". Use a diagram to show an example.

19)What is "fiscal policy"? Discuss how fiscal policy can be used to stabilize the economy (according to the Keynesian theory).

EXAM II

20)Contrast the Keynesian and Classical Theories in relation to the Great Depression. Which theory was proven correct by the facts?

21)Compare and contrast discretionary fiscal policy and the automatic stabilizers. Explain how they work in relation to the present economic situation.

22)Use the Goldsmith Principle to explain how banks create money.

23)Discuss the concept of double-entry bookkeeping. Use a T-account to demonstrate how it works.

24)Discuss the structure of the US banking system showing the relationship between the various parts.

25)Explain the three formulas that determine how much lending banks can do.

26)Why can a single bank lend out only as much as its excess reserves but a banking system can lend a multiple of its excess reserves.

27)What is monetary policy? Discuss the three ways that the Fed can change the lending capacity of the banking system.

28)What is a bond? Discuss the relationship between interest rates and bond prices.

29)What is "malinvestment". Discuss the main aspects of Austrian Busines Cycle Theory (ABCT).

30)Discuss the concepts of time preference and the structure of production. What is the take away idea from the bus driving across the desert analogy?

31)What is the international balance of payments? Contrast the current account and the capital account.

32)What is an exchange rate. Use supply/demand analysis to show (a) currency appreciation and (b) currency depreciation.

33)Why is it so difficult, some would say impossible, to manage an economy? What are your recommendations for improving the performance of our economic system?

34)Do you think it is important for people to have a basic understanding of economics? Why or why not?