Here are some news links from yesterday and today. Preceded, of course, by a Golden Pen selection (and in this case, a bonus column as well)…
THE GOLDEN PEN: PROFESSOR STEVEN HORWITZ
CONSUMERISM IS KEYNESIANISM – Foundation for Economic Education
This relatively short, thoughtful column from Steven Horwitz is an excellent reminder that those who support free market solutions should be focused on getting government out of the way the private sector creating an environment for production. It has been an egregious and fallacious focus by those in government on spurring consumption that is making our situation worse.
A brief excerpt:
"One of the most pernicious and widespread economic fallacies is the belief that consumption is the key to a healthy economy. We hear this idea all the time in the popular press and casual conversation, particularly during economic downturns. People say things like, “Well, if folks would just start buying things again, the economy would pick up” or “If we could only get more money in the hands of consumers, we’d get out of this recession.” This belief in the power of consumption is also what has guided much of economic policy in the last couple of years, with its endless stream of stimulus packages.
This belief is an inheritance of misguided Keynesian thinking. Production, not consumption, is the source of wealth. If we want a healthy economy, we need to create the conditions under which producers can get on with the process of creating wealth for others to consume, and under which households and firms can engage in the saving necessary to finance that production."
READ THE WHOLE COLUMN HERE.
FR Friend Bruce Bialosky’s Very Bad Day – Townhall
- Ann Gust Keeps Jerry Brown Grounded – SFChron (Joe Garofoli)
- Schwarzenegger’s Mixed Legacy – AP (Juliet Williams)
- State Prison Guards Want New Contract – SacBee (Jon Ortiz)
- U.C. Regents Brace For More Bad News – SFChron (Phil Matier, Andrew Ross)
- Schwarzenegger’s Legacy: Green Laws and Red Tape – SJMN (Paul Rogers)
- FR Publisher Jon Fleischman quoted every so briefly.
- Profile of New Assembly GOP Leader Connie Conway – SacBee (Jim Sanders)
(h/t to Jack Kavenaugh)