6 February 2023
The manner of the decline and virtual destruction of the Victorian state Liberal Party helps explain the role so-called ‘moderates’ and cynical opportunists played in bringing down the Scott Morrison government thereby advancing the Australian Greens’ anti-growth policies.
In 2002 election year the Victorian Liberal Party, always ready to shoot itself in both feet, replaced as leader of the party the disastrous Denis Naphine with the catastrophic Robert Doyle. The result was a humiliating and unprecedent electoral route. Determined to take the Liberal Party further down the road to political oblivion the ‘moderate’ Mr Doyle haughtily declared in 2003 that Victoria needed to implement “sustainability” policies because the free market is a menace to the environment.
Continue reading The Australian Greens and their Liberal Party allies part I
6 February 2023
I finished part one with the observation that defining saving as income minus saving is misleading. An increase in the demand to hold money is not an increase in savings. Cash balances and savings perform different functions. Keynesians make no distinction between savings and cash balances; therefore they can, and do, assume that savings are not spent. But as Ricardo pointed out: “To save is to spend.”1
The ‘problem’ of equality between savings and investment arises when we define savings in purely monetary terms (which we usually do) and investment at given prices. When investment exceeds savings we have inflation. The excess investment means that the banking system has created new credit. This led some economists to jump to the absurd conclusion that we can have investment without savings. They obviously have not heard of ‘forced savings2.
Continue reading Keynesian dogma is creating our economic crises, not the free market part II
30 February 2009
The global economic crisis that the reckless monetary policies of the world’s central banks visited upon us still leads the great majority of economists, economic commentators and know-all pundits mislabelling the situation as one of either market failure or another example of the innate increasing instability of the capitalist system1. That vulgar Keynesian2 thinking contributed mightily to the crisis never enters the heads of these economic commentators — but then very little ever does.
These crises are a very old story. David Ricardo and his contemporaries had a far greater understanding of the phenomenon than all the members of the economic commentariat put together, including those with Nobel Prizes. Paul Krugman, for instance, argues that recessions “happens when, for whatever reason, a large part of the private sector tries to increase its cash reserves”3. This is pure baloney. No recession in economic history was ever caused by a sudden demand to increase cash balances. One only has to look at the profits and cash situation of firms in 1929 to see that Krugman’s assertion is completely baseless.
Continue reading Keynesian dogma is creating our economic crises, not the free market part I
30 January 2023
The late Professor Haydn Washington1 was a deep green and like so many deep greens he was an economic illiterate whose idea of a idyllic society was based on the concept of a “steady state economy”, condition that the classical economists called a “stationary state”, an imaginary long-run economic state of affairs in which all economic progress has ceased because the economy has reached, so to speak, its final point of rest. Of all the classical economists John Stuart Mill2 was the only one who welcomed this prospect, not that readers would ever learn that from reading deep green propaganda. Whereas Mill’s3 vision was one of a stationary economy that comes to rest of its own volition the greens’ vision is that of a dystopian nightmare imposed through force and duplicity and ruled by an iron fist.
Continue reading Australian Greens’ lies, distortions and oysters
9 January 2023
Part 1 gave examples of Ricardo’s contemporaries refuting his rent theory. I finished with the Rev. Jones total destruction of Ricardo’s theory of how economic rent emerges. Nevertheless, some economists tried to dismiss the Reverend’s argument on the spurious grounds that Ricardo — at least in the instance of rent — was using a purely historical argument to make a point. This is the line that Wesley C. Mitchell seemed to support when he presented his view that
that Ricardo was not taking into account actual historical circumstances; that his was a schematic, theoretical view of the subject; that… none the less the Ricardian theory of rent remained true…1
This is unbelievable. Ricardo emphatically stated that the best land is always farmed first and that the pressure of population growth would bring marginal lands into cultivation thus creating the differential he called rent. There were no buts or equivocations. He understood that the theory rested entirely on this statement. Once it could be shown that the sequence of events were not as he described them then the theory would collapse. But it should not be forgotten that for his critics the key point was not the existence or non-existence of marginal land but the fact that what really mattered was the land’s productivity. This is why Ludwig von Mises said:
Continue reading AUSTRALIA’S ANTI-GROWTH ANTI-CAPITALIST GREEN PARTY IS SCREAMING FOR A FALLACIOUS RENT RESOURCE TAX PART 2
19 December 2022
Before the Marxist Adam Bandt appeared on the green scene there was Bob Brown, the founder of this pernicious party. Brown was never for the workers any more than the Green Party he founded is today. What is overlooked is just how elitist and loony green economics really is. Brown revealed the Greens real attitude to Australian workers many years ago in a letter he had published in The Australian1 expressing his views on what he sneering called “extraction industries” basically said it all. This brilliant economist and defender of the Koal bear and Australia’s fictitious “first nations2” defined logging and mining as “resource robbery”.
He further declared that Tasmania is a “post-industrial” society, despite the fact that it has never been industrialised, because her economy has never been based on those stinking high-wage energy intensive “dinosaur industries like pulp mills, zinc mills and aluminium mills.” Is this why average wages in Tasmania are about $11,000 lower than in mainland states? Yet these sanctimonious Greens wallow in their sense of moral superiority.
Continue reading Adam Bandt’s Green Party policies will be hell for workers
19 December 2022
Led by Adam Bandt, a Marxist, Australia’s anti-capitalist Green party2 wants to use the concept of economic rent to target profits. Even though the concept of economic rent is accepted by the great majority of economists as factual it is in reality an absolutely dreadful fallacy whose continued existence is not due to David Ricardo but John Stuart Mill who resurrected it in his Principles of Political Economy3. Though found in every economics textbook it has been largely ignored as an instrument of taxation. Unfortunately, dealing with this fallacious theory is a tedious process which will require some forbearance from readers.
Continue reading Australia’s anti-growth anti-capitalist Green party is screaming for a fallacious rent resource tax part 1
Adam’s Creighton’s reporting from Washington is appalling. It has to be otherwise his bosses at Murdoch’s Australian would sack him. The job of every so-called reporter that rag ships to the US is to whitewash Democrats and disparage Republicans. At the moment more Democrat scandals are exploding into public view but rather than report them, thereby upsetting his bosses, he chose to write happy-clappy garbage on the wreck of an economy that Biden and his America-hating left-wing controllers are creating. In do so he shames himself.
Continue reading Adam Creighton’s paints a false picture of Joe Biden’s train wreck of an economy and ignores the impending recession
The present economic situation was brought to us by Keynes’ fallacious economic opinions. We now have a huge debt and politicians who are wedded to big-spending fallacies that will bring on another recession. These are ignoramuses who firmly believe the nonsense that any government spending is investment. It was Keynes who wrote that even
‘wasteful’ loan expenditure [credit expansion] may nevertheless enrich the community on balance. Pyramid-building, earthquakes, even wars may serve to increase wealth,…1” (Italics added)
It should beggar belief that any reasonably intelligent person could swallow this oxymoronic statement. Demand deficiency lies at the heart of Keynes’ economics, so let us examine this fallacy.
Continue reading How Keynesian economics gave us the disaster of big spending governments