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Course Materials:
Course Audio: First Class
History
of Keynesian Economics
Pre- World War I
Era of globalization prior to the first World War
Free movement of labor and capital, free and open markets before World
War I
Post- World War I
Collectivism: Reparations payments for Germany
Russian Revolution during World War I, Bolsheviks rise to power, people
are seen as subservient to the state
Keynesian Economics versus Free-Market Economics
Keynesians view political economy seen as a machine to be fine-tuned
Free Market economists viewed markets as a force Stagflation
Inflation + Unemployment in the 1970s
Keynesian theory replaced by Monetarist school to control inflation (Paul
Volker)
Rise
of the Free Market
Reagan's Economic Policy
Tax Cuts, incentives to grow business
Deregulation: Airline Industry; lower ticket prices, greater demand
Moving away from Market Controls
Price Controls caused shortages in Cold War Germany (eliminated by Erhard)
Examples of England, Soviet Union, China, Poland, and Latin America
Peron in Argentina v. Pinochet in Chile: Chilean Miracle
Ronald Reagan and Margaret Thatcher in the 1980s
Political
Ideologies
Collectivist v. Individualist
Definitions
Schools of Economic Thought
Neo-Classicists: Based on Adam Smith; Marshall's Supply-Demand Curves
Keynesian: Government manipulation of economy through fiscal policy, managing
aggregate demand
Marxists: Planned economy, no private ownership, still exists among academics
Monetarists: Milton Friedman; Control demand through monetary, rather
than fiscal, policy
Austrian School: Hayek and von Mises; Free-Market, no government manipulation
through fiscal policy nor monetary policy
Philosophic
Defense of Liberty
Placing the Individual above the Collective
John Adams, Natural Rights derived from the Creator
Lyn Beth Neylon, Natural Rights exist prior to law
Ayn Rand, Atlas Shrugged; morality of private property
Judeo-Christian Tradition
Ten Commandments; "Thou shalt not kill" and "Thou shalt not steal"
Ownership of your life and the proceeds of that life
Classical Thought
Aristotle; tradition of logic, individual virtues
Cicero; Administrative law different from Natural Law, inherent rights
of the individual
Philosophy
Free-Market Libertarian Philosophy
Code of Ethics
Metaphysics
Epistemology
Everyone can engage
Objective observation
Logic in market activities Empirical Evidence
Reason and keep the proceeds of those activities.
Collectivist Philosophy
From each according to Subjective reality
Emotion his ability to each
Everything is relative
Feelings
according to his needs
No absolutes
Class-Discussion:
Islamo-Fascism
History of Islam
Sunna; rights of life and property within the group
Rights outside of the group not respected
Additional Reading:
- Economics in One Lesson, Henry Hazlitt, Three Rivers Press,
ISBN 0-517-54823-2
- Between Power and Liberty: Economics and the Law, The Ludwig
von Mises Lecture Series Vol. 25, Hillsdale College Press, ISBN 0-916308-63-4
- “Free to Choose”, Milton Friedman (video series)
- Economic Fallacies, Frederic Bastiat
- Human Action, Ludwig
von Mises
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Capitalism: The Unknown Ideal, Ayn Rand
- The
Road to Serfdom, Friedrich von Hayek
- The Mystery of Capital,
Hernando de Soto
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