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: 2
- Tech conference sparks ideas and imagination - 0
- Nashua assessment tests miss the mark - 1
- St. A's board of trustees responds to criticism of graduation change - 2
- Officials proposing cutting Derry school budget by $1.4 million - 0
- St. Anselm in a stir over graduation date change - 13
- Nashua schools struggle to find more time for middle-school math - 0
- Former Gov. Lynch chosen for PSU Robert Frost award - 0
- Keene State College gets funding to further biology research - 0
- Anti-bully message on display at Pinkerton - 0
READER COMMENTS: 0
- Dave D'Onfrio's Patriots Notebook: Finding a way to win - 0
- Sam Asano's Let's Invent: NoNose gets readers talking like nobody's business - 0
- Another View -- Bill O'Brien: Ask your state rep. to vote for transparency in the House - 0
- Old friends and a 'homeless angel' make for good stories anytime - 0
- Clooney gets it: Sony attack was not a 'crime' - 0
- New coats warm city kids, firefighters' hearts - 0
- NHIAA Roundup: Martin, Pinkerton top Salem in tournament - 0
- Inmate reported missing from Concord transitional unit - 0
- College Roundup: SNHU women win - 0
The Sony hack: Kim's judgment of Obama
Tensions boil over after NYC police killings