Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Milton Friedman

Venezuelan Currency Lost Half Its Value in November

This article appeared online at TheNewAmerican.com on Monday, November 28, 2016:  

Português: Brasília - O chanceler da Venezuela...

Nicolas Maduro

Bloomberg reported last Thursday that Venezuela’s currency — the bolívar fuerte or “strong bolivar” — has lost 45 percent of its purchasing power so far this month, with six days to go. The underlying cause was put simply by Professor Milton Friedman, a member of the “Chicago School” of economic free market thinking and winner in 1976 of the Nobel Memorial Prize in Economic Sciences: “Inflation is always and everywhere a monetary phenomenon … and can be produced only by a more rapid increase in the quantity of money than in output.”

On the other hand, Venezuela’s president, Nicolas Maduro,

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Tax-credit Private-school Scholarship Funding Explodes in Oklahoma

This article first appeared online at TheNewAmerican.com on Tuesday, March 24, 2015:

Many Oklahoma taxpayers are paying less in state income taxes, thanks to contributions made to scholarship granting organizations (SGOs) last year.

It’s a new wrinkle, and many of those opening envelopes from the Oklahoma Tax Commission are in for a pleasant surprise. A single taxpayer contributing $2,000 to an SGO last year will save $1,000 in state income taxes. A couple contributing $4,000 will save $2,000. These are credits, not deductions, based on one-half the contribution. Translation: Every dollar of credit saves one dollar in state taxes.

For those able to give more — think successful small business owners, lawyers, accountants, physicians, software engineers, farmers, ranchers, and other business owners operating as regular C corporations — that letter in the mail this month could generate even greater excitement.

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Milton Friedman, the W-2 Withholding form, and the Underground Economy

This article first appeared at The McAlvany Intelligence Advisor on Monday, February 23, 2015:

English: Portrait of Milton Friedman

Milton Friedman

With Americans about to file their income tax returns, most of them will look at their W-2 withholding forms to get the numbers without any background on how paying the government first came to be accepted as normal.

At age 16 this writer worked as a helper on a Canada Dry delivery truck. It was a plum job if one could get it. A “helper” load was 160 cases (the heavy glass-bottle kind), and it paid $20 for the day. There was great incentive to dump those cases as fast as possible (without breaking them!) and get back to the warehouse and put in the time sheet.

The first week generated $100, and this writer had never seen a $100 bill before. Imagine his surprise when his pay envelope had “change” in it. The slip showed Gross $100.00. Net: $92.43. The government got into this writer’s pay envelope before he did!

He’s never forgotten that moment, and was surprised, so many years later, to learn how much a hand one of his favorite economists, Milton Friedman, had in creating the entire withholding system in the US back in 1943.

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Foreign Affairs: Give Away Free Money!

This article first appeared at the McAlvany Intelligence Advisor on Friday, August 29, 2014:

Foreign Affairs

Foreign Affairs

What happens when a college professor meets up with a graduate student from Oxford University, intending to solve the world’s economic problems? What happens when they consider that the previous attempts to revive the economy have failed and their recommendation is to do more of the same?

The title of their resultant article in Foreign Affairs – the premier publication of the Council on Foreign Relations – explains it all:

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Article in CFR Magazine: Give Away Money to Stimulate Economy

This article first appeared at TheNewAmerican.com on Thursday, August 28, 2014:

 

Los Angeles Police Department (LAPD) Bell 206 ...

Mark Blythe, a professor at Brown University, and Eric Lonergan, a hedge fund manager living in London, have conjured the ultimate solution to a stagnant economy: Central banks should give away free money.

These two authors of a lengthy and allegedly erudite article in the September/October 2014 issue of Foreign Affairs, published by the Council on Foreign Relations (CFR), appear to be living in an alternate universe, as their suggestion, if it were fully implemented, would push the world’s economy back to the Dark Ages.

The article, entitled “Print Less but Transfer More: Why Central Banks Should Give Money Directly to the People,” rests on the false assumption that

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President Proposes Doubling the tax Subsidy for the Poor

President Obama’s proposal to double the earned income tax credit (EITC) for the working poor on March 4 came with all the attendant benefits such an expansion would provide: it would reduce poverty while encouraging people not working to get a job. It would expand the existing law to cover an additional 16 million families with 30 million children.

In his State of the Union Address in January, the president warned this was coming,

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Feulner’s farewell letter is a good reminder

Ed Feulner leaves The Heritage Foundation today as former Senator Jim DeMint takes over, and his farewell letter is a good reminder of how the freedom fight has been doing over the past 35 years.

First, his letter sounds

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Feisty, Fearless Economist Anna Schwartz Dead at 96

Anna Schwartz by David Shankbone

Best known as the co-author, along with Nobel Prize-winning economist Milton Freidman, of A Monetary History of the United States, 1867-1960, Anna Jacobson Schwartz died on Thursday, June 21, in New York City at age 96.

A brilliant economist in her own right, she provided the background, the research, and so much of the thinking behind the 859-page A Monetary History that Friedman claimed that “Anna did all the work, and I got most of the recognition.” Considered by many classical economists as the magnum opus on monetary policy (the impact of money supply on economic behavior), by itself it shifted the blame for the Great Depression from the statists’ claim that it was due to excessive laissez-faire capitalism in the 1920s to the interventions by the Federal Reserve that caused the Great Depression and that greatly exacerbated both its depth and duration. So powerful were the conclusions that one of the book’s chapters, “The Great Contraction, 1929-33,” was published as a stand-alone paperback in 1965, and the book itself was hailed by the Cato Institute as one of the most influential economics books of the 20th century. Even Federal Reserve Chairman Ben Bernanke admitted that A Monetary History “transformed the debate about the Great Depression.”

Accolades abounded following the announcement of her passing, even from those who parted ways with her on the role of central banking in a modern economy and the Federal Reserve in particular. George Selgin, a senior fellow at Cato, remembers Schwartz as being candid and uncompromising: “Anna never held a punch, and when she threw one, it landed square on target.” Robert Higgs, a scholar at the Independent Institute, noted, 

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Is Rick Perry Right? Is Social Security a Ponzi Scheme?

Rick Perry shows us around his office. He's Te...

Image via Wikipedia

Presidential candidate Rick Perry opined in the first Republican debate that  Social Security is a “failure” and a “Ponzi scheme,” and then reiterated the charge in the second debate on Monday night. At the first debate, Perry said Social Security is a “Ponzi scheme for these young people. The idea…that the current program is going to be there for them is a lie.” When pressed by the moderator, Perry reiterated, saying Social Security is a “monstrous lie to our kids.”

On Monday night Perry refused to back down: “It is a Ponzi scheme to tell our kids that are 25 or 30 years old today, you’re paying into a program that’s going to be there. Anybody that’s for the status quo with Social Security today is involved with a monstrous lie to our kids, and it’s not right.” But in his op-ed piece in USA Today on Sunday, Perry backed off, writing instead that

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What’s Wrong with Insider Trading? Ask Raj Rajaratnam

NEW YORK, NY - APRIL 12:  Billionaire Galleon ...

Image by Getty Images via @daylife

When Raj Rajaratnam, founder of Galleon Management, was convicted on all 14 counts of insider trading earlier this month, it made the phones ring in lawyers’ offices all across the country. Rajaratnam was only one of 47 people charged but he was by far the biggest fish caught in the net set by United States attorney for Manhattan, Preet Bharara. It took Bharara’s office 9 months of wire-tapping Rajaratnam’s phone, and 18 months of additional investigative work to get the convictions, and Bharara was ecstatic: “The message today is clear–there are rules and there are laws, and they apply to everyone, no matter who you are or how much money you have.”

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Increasing Gas Prices: What’s Seen and Not Seen

Pumping Fuel

Image by Dottie Mae via Flickr

With the national average price of gasoline hitting the highest level in history for this time of the year, the impact of that increase reaches far beyond the pocketbook of the average worker driving off to work in the morning. For every 25-cent increase in the price of gas (which has increased almost 70 cents per gallon in the last year, and by nearly 30 cents in just the last month), consumers are forced to spend an extra $3 billion that

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Paul Volcker: Insights from an Insider

Paul Volcker, former head of the Federal Reser...

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With the announcement by Reuters that former Federal Reserve Chairman Paul Volcker was going to resign shortly from the Obama administration came the temptation to reminisce about Volcker’s influence during the late ’70s and early ’80s when inflation exceeded 13 percent and interest rates on short-term government Treasury bills hit 21.5 percent.

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“The Ben Bernank” and the Emperor’s New Clothes [VIDEO]

William C. Dudley, president of Federal Reserv...

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William C. Dudley, president of the Federal Reserve Bank of New York, defended the Fed’s recent announcement to print more money (called Quantitative Easing) to stimulate the moribund economy. Dudley, who is also the vice chairman of the Fed’s FOMC (Federal Open Market Committee), and former chief United States economist for Goldman Sachs, said that the decision to increase the supply of money was only to reduce interest rates further and not to devalue the dollar. He said, “We have no goal of pushing the dollar up or down. Our goal is to ease financial conditions and to stimulate a stronger economic expansion and more rapid employment growth.”

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“NFL” Means No Free Lunch for Taxpayers

View from an aircraft on approach to Newark-Li...

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When the 82,566 fans of the New York Giants cheer their team at the home opener of the season this Sunday at the New Meadowlands Stadium, they will likely enjoy the game more than the taxpayers of New Jersey who still owe $266 million on the old Giants Stadium which was demolished to make way for the new one. Those taxpayers may also be dismayed to learn that the revenue stream from the old stadium has now all but disappeared, putting them on the hook for $35 million in principal and interest payments each year to service the bonds that built the old stadium as part of the Meadowlands Sports Complex back in 1976.

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Paul Samuelson, ‘Economics’ Textbook Author, Dies at 94

Photo of Paul Samuelson

Long-renowned economist Paul Samuelson died on December 13 at his home in Belmont, Massachusetts, at the age of 94. In addition to writing Economics in 1948 — which became the best selling economics textbook for several decades, having been translated into forty-one languages and selling over four million copies — Samuelson also won the Nobel Memorial Prize in Economic Sciences in 1970.

The chorus of accolades of effusive praise continues to resonate:

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.
Copyright © 2020 Bob Adelmann