Hayek Order

Wednesday, December 8, 2010

Franchise of Voting distorts the markets

How did we get here? How can the US have a large political movement — the Tea Party — pushing for the hardest of hardmoney policies when there is no hard-money lobby with its wealth on the line? How is it that the unemployed, and those who fear they might be the next wave of unemployed , do not register to vote? Why are politicians not terrified of their displeasure?

Economic questions abound, too. Why are the principles of nominal income determination , which I thought largely settled since 1829, now being questioned? Why is the idea, common to John Maynard Keynes, Milton Friedman, Knut Wicksell, Irving Fisher, and Walter Bagehot alike, that governments must intervene strategically in financial markets to stabilise economy-wide spending now a contested one?

Chandra at 10:37 AM

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