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
- Thomas Sowell: Playing the race card at the border - 0
- Another View -- John Dumais: Mandatory GMO labeling is all cost, no benefit - 5
- Another View -- Stephen L. Carter: Why is the left going after profit? - 8
- Clifford D. May: Pinpointing the cause and effect in Gaza - 2
- You Turn, NH -- Suellen Griffin: There is first aid for mental health, too, and it works - 2
- Pat Buchanan: We are transforming into the Brazil of North America - 2
- Gail Fisher's Dog Tracks: Before your dog takes a dip in fresh water, learn about toxic algae risks - 0
- Another View -- Yehuda Yaakov: What Israel is up against - 7
- Another View -- Betsy McCaughey: Scaremongering is the left's hobby - 2
READER COMMENTS: 0
- Another View -- Gilles Bissonnette: To keep Libertarians off the ballot, NH violates their rights - 0
- Insanity: Obamacare and the rule of law - 0
- Tom Woodlock All-Stars primed for success in Babe Ruth tournament - 0
- Manchester waives right to buy Millyard building - 0
- Police search for missing Stratford woman - 0
- Blue Jays cool off Red Sox - 0
- Passers-by, including two active-duty Army soldiers, help rescue mom, daughter in I-93 rollover - 0
- Manchester panel OKs new academic standards, despite Common Core criticism - 0
- Still no budget in Nashua - 0
Passers-by, including two active-duty Army soldiers, help rescue mom, daughter in I-93 rollover
Market Basket workers urged to 'shut it down'; deposed CEO urges fired workers be given jobs back
U.S. appeals courts issue conflicting rulings on Obamacare exchange subsidies such as NH's
Insanity: Obamacare and the rule of law