Don’t Fear the Fed

Federal Reserve Building, Washington DC.

In the mid-1960s, Liberty Fund’s founder, Pierre Goodrich, decided to travel to Montauk, Long Island and rent an apartment overlooking the ocean. He arrived there with his wife and top personal assistant and spent a month reading Ludwig von Mises’ most important work, Human Action (1949). Such was Goodrich’s commitment to understanding the classics of liberty and such were his resources that he went to great lengths to read and contemplate one of the great works of 20th century Austrian economics.

Let’s suppose you are not a multimillionaire businessperson with the time and dedication to live by the ocean and read the great works of Mises and other Austrians. Fear not—John Tamny’s excellent, accessible, and surprisingly provocative Who Needs the Fed? will save you the cost of a beachfront rental on Long Island and give you a nice introduction to one of Mises’ other classic works, The Theory of Money and Credit.

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A Grand Confusion of Language and of Understanding

Successful statisticsHere’s a summary of Peter Thiel’s take, as expressed recently in the Wall Street Journal, on the contrast between competition and monopoly:

Competition is not as marvelous, and monopoly is not as monstrous, as pop culture and economic theory proclaim. Entrepreneurial creativity brings incessant change, so competitive firms are lame nonentities while firms that win a monopoly position through innovation are magnificent benefactors to their owners and the general public alike.

Thiel is on the right track.

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Friday Roundup: December 14th

Don't miss Brian Tamanaha's visit to Liberty Law Talk to talk about Failing Law Schools. At EconLib's vast treasure trove: Israel Kirzner on "The Philosophical and Ethical Implications of Austrian Economics." Reconsidering Hobbes' revolution. "Debt and the Constitution" John Steele Gordon at The American: One of the president’s demands for avoiding the fiscal cliff is that Congress give him the power to raise the debt ceiling, subject only to a two-thirds vote in each house to override him.While it is hard to imagine Congress willingly surrendering so basic a power to the executive branch, I wonder under what authority it could do so.…

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