This post was born as a comment by our economist reader and contributor, Don L. He expanded it into an article. 

It is addressed to the average American who earns, banks, invests, and pays taxes, but might confess that he doesn’t really understand “the dismal science” (as the Scottish philosopher Thomas Carlyle called Economics). Free-market capitalism is the only system that benefits everybody, and the only economists who were right about this were those of the Austrian School (of which the best known members are, probably, Ludwig von Mises and Friedrich Hayek). The article points the way to finding out what free-market capitalism really is. 

The possibly surprising point the author makes is that the United States is not really the free-market capitalist country it is purported to be …  

**

There’s a tactic employed in the field of Economics, and other corrupted fields of study/“professionalism” (history, law, meteorology/climate, education/compulsory schooling, etc.) that I label the “3rd-Party Authority Justification & Deflection Tactic”.  The tactic invokes authority to implement a plan and the ability to escape blame when it fails: “We relied on the experts.” And, the experts (unjustified) sell their name and authority (the “Top 500”, the “Leading” or the “Council of Advisers”, etc.) for grants, subsidies, a new regulation or a tit-for-tat pay raise. Being right is subordinated to the reward from political benefactors: “We support the Senators program”; which, as all unconstitutional social plans do, inevitably fails with tragic consequences.

It must be understood that in the US of A it is estimated that from 53% to 60% of ALL economists are employed directly by government (split approx. 60/40 percent by federal and state respectively) with another 20% plus estimated to be employed in positions dependent on government support. Upton Sinclair said it best: “It is hard to get a man to understand a thing when his job depends on his not understanding it.”  (Do you think there might be a “favor government” over human beings bias in the profession? DUH)

The challenge stands: The Austrian economist Robert Murphy challenged the icon of leftist economics, Paul Krugman, to debate. The inducement was a prize of $100K to be given to a food bank in NYC if Krugman merely showed up …he has refused. Consider, he refused to just put in an appearance and thereby denied a food bank, the hungry, a windfall of $100K of needed funds/foodstuffs. So much for social justice; even primary leftist cause takes a back seat to being exposed as a fraud. He’s a fraudulent coward!

A debate on what the political economic policy should be has never happened. Indeed, every measure is taken to insure that economics qua economics is never ever exposed to the general public. Mainstream economics is as fake as mainstream news. It is a fraud, sham, scam and lie. What is shoved down our throats as economics is singularly and only government central planning of the economy. Economics qua economics is a descriptive social science requiring thinking. IT IS NOT pretend hard science employing mathematical-modeling of historic, static, limited point-in-time data toward predicting (crystal ball) the future for unconstitutional, politicized, social engineering.

The world has been brought, through ideologically-designed compulsory schooling , to unquestionably believe the lie that the economy is so large and complex that only experts can manage it. Yes, the economy is large and complex … SO? How does “manage it by experts”  follow? IT DOESN’T.

In fact it was at the end of the 19th and into the 20th century that the answers to all the significant questions about economics, after 500 years of scholarship, were finally answered. And, the paramount finding was the irrefutable fact that an economy cannot and ought not be managed at all; by anyone whether “expert” or not.

These findings, however, did not and do not sit well with the rulers … implementation requires  stripping them of their power over the people: He who has the gold makes the rules. Well, simultaneous with the revelations of real economics, the opportunist and clownish son of a noted economist, admittedly fabricated a politician-pleasing economic theory, out of thin air (like the phony money monetary policies he backed – the FED). The sophomoric son was John Maynard Keynes and his ludicrous and wholly incomprehensible theory was presented in his book The General Theory of Employment, Interest and Money.

Keynes’s theory has been totally destroyed, yet it persists because it justifies – absolute nonsensical and proven tragically wrong – government intervention in the economy: social engineering. Marx – also a failed thinker with a failed tragic theory – and Keynes have done more to destroy lives, wealth and natural resources than any other two men. They provided the “3rd-Party Authority Justification & Deflection Tactic” cover, employed by governments around the world, behind which rulers could hide as they engineer “social justice” – i.e. control and manipulate their populations. Like here in the good ol’ US of A.

Incidentally, the supposed icon of Free-Markets, Milton Friedman, was NOT!  In fact, Friedman naively supported the worst and most deleterious of the government interventions, thereby negating his promotion of free enterprise (curiously not free-markets): monetary manipulation (inflation) for the benefit of government – not the governed!

Austrian economics, for those who do not know, is the only school of economics that does NOT incorporate any notion of government intervention in the economy – ALL OTHERS DO! Austrian Econ is the only school that advances Free-Market Capitalism; which mirrors, coincidentally, the Founder’s principles of individual sovereignty and government by the consent of the governed.

It is the only school that has been proven correct, 100% of the time, in projections and warnings for more than 100 years. Name one economist from any other school that has ever been right. That was rhetorical as one cannot find any other school of economics that has ever been correct …PERIOD. All they offer is the fake cover for fraudulent banking schemes that benefit politicians and their cadres of sycophants.

If you don’t know what free-market capitalism IS, you can be made to believe it is the economic system in America when it isn’t; and, IT ISN’T!

If you don’t know what free-market capitalism IS, you can be made to believe it is the cause of all manner of horrific and immoral human tragedy when it isn’t; and, IT ISN’T!

If you do not know what centralized fractional reserve banking is then you have to begin to ask yourself: “How have I been made to not care about my own best interests?” Why? Because centralized fractional reserve banking IS the fascistic political economic system of the united States of America NOT Free-Market Capitalism! It was enacted as law in 1913. It replaced Free-Market Capitalism with what can only be described as Centrally-Planned “Debtism” (dollars do not represent wealth but, rather, DEBT). You may know it’s intended-to-deceive name: The FED – not a federal government entity. How is it you have never been taught this?

Economic tragedies cannot be blamed on an economic system that does not exist. Every economic turn down in America’s history is directly and demonstrably the fault of government intervention in the economy; specifically, monetary manipulation by the FED. And, not one bit of it is FREE-MARKET CAPITALISM! So, why is it blamed? Well, the planners aren’t going to blame themselves … are they?

If life, liberty and prosperity are inextricably linked to the economy and there can be no exercise of rights, unalienable or otherwise, without economic freedom, how is it over 95% of Americans, including bankers and top CEOs, do not know what centralized fractional reserve banking is or does – to their detriment.

NOTE: Centralized fractional reserve banking IS the system by which purchasing power (wealth) is stripped from those on the lowest rungs of the economic ladder and transferred to those already up the ladder and standing on the roof: currency inflation is the FED’s ONLY function.

It is time that every citizen fulfilled his duty to give INFORMED consent. First, each individual must take the time to discover Free-Market Capitalism – Austrian economics. Once done, the informed citizen will never be Lulled, Gulled & Dulled by duplicitous and/or dangerously ignorant career-politicians, their army of cronies and their deceptive 3rd-Party Authority Justification & Deflection Tactic ever again … GUARANTEED!

Here’s some further “discover” info:

Keynes The Man by Murray N. Rothbard

Where Keynes Went Wrong: And Why World Governments Keep Creating Inflation, Bubbles, and Busts by Hunter Lewis

A Free-Market Monetary System and The Pretense of Knowledge by F. A. Hayek

Recovering Economics by Harry C. Veryser

The Red Prussian by Leopold Schwarzschild

QUICK INTRODUCTION TO AUSTRIAN ECONOMICS:

Why Austrian Economics Matters by Llewellyn H. Rockwell, Jr

What is Austrian Economics? — The Ludwig von Mises Institute

Economic Policy: Thoughts for Today and Tomorrow by Ludwig von Mises

Liberty and Property by Ludwig von Mises

 

Don L     April 5, 2018

(For more books that will aid discovery in the field of of Economics, please see The Atheist Conservative’s (starter) reading list, under Pages in the margin.)