Thomas Sowell: Janet Yellen and the return of Keynes
Ms. Yellen, a former professor of economics at Berkeley, has openly proclaimed her views on economic policy, and those views deserve very careful scrutiny. She asks: "Will capitalist economies operate at full employment in the absence of routine intervention?" And she answers: "Certainly not."
Ms. Yellen asks: "Do policy-makers have the knowledge and ability to improve macroeconomic outcomes rather than making matters worse?" And she answers: "Yes."
Her first question, whether free market economies can achieve full employment without government intervention, is a purely factual question that can be answered from history. For the first 150 years of the United States, there was no policy of federal intervention when the economy turned down.
Keynesian economists would say that this was exactly the wrong thing to do. History, however, says that unemployment the following year went down to 6.7 percent — and, in the year after that, 2.4 percent.
Thomas Sowell is a senior fellow at the Hoover Institution at Stanford University. His website is www.tsowell.com.
READER COMMENTS: 0
- Girl Scouts need help sending cookies to military personnel overseas - 0
- Auto dealers group offers scholarship aid, funds to NH veterans programs - 0
- Commentary: Chronically homeless vets are a problem for all of us - 0
- Rep. Shea-Porter bashes planned military cuts - 0
- New Hampshire Veterans News in Brief - 0
- Sen. Ayotte concerned about cuts in COLA for new service members - 0
- NH veterans get a deal at Amesbury Sports Park - 0
- VA Medical Center to host open house - 0
- Parents of fallen SEAL will speak in Hollis - 1
READER COMMENTS: 0
- Livingston scores twice as Monarchs top Providence - 0
- NHIAA Basketball: Bedford girls top Trinity to advance - 0
- Ham radio introduction and class - 0
- NHIAA Hockey: Bedford rolls past Lebanon, into D-II semis - 0
- NHIAA Hockey: Sprague nets hat trick to lead Central past Trinity - 0
- Mass. ER staffers to describe day of Boston Marathon bombings - 0
- College Roundup: UNH men ousted from hoop tourney - 0
- NHIAA Girls' Basketball: Campbell tops Fall Mountain for second D-III championship - 0
- At FIRST, it's all about learning and helping each other - 0
Blue shame: Obamacare's big change
Ted Siefer's City Hall: It was all about chickens, alleged threats and nocturnal wanderings
Planned Parenthood funds S&M Web video
NH delays enforcing liquor warehouse pact
Roger Simon: How would Hillary handle Putin?