“The more the state plans the more difficult planning becomes for the individual.”
GMU Economics Society Blog
“The more the state plans the more difficult planning becomes for the individual.”
“The natural progress of things is for liberty to yield and government to gain ground. “
– Thomas Jefferson
“Under a system of perfectly free commerce, each country naturally devotes its capital and labor to such employments as are most beneficial to each. This pursuit of individual advantage is admirably connected with the universal good of the whole….[It] distributes labor most effectively and most economically; while, by one common tie of interest and intercourse, the universal society of nations throughout the civilized world.”
“A government that sets out to abolish market prices is inevitably driven toward the abolition of private property; it has to recognize that there is no middle way between the system of private property in the means of production combined with free contract, and the system of common ownership of the means of production, or socialism. It is gradually forced toward compulsory production, universal obligation to labor, rationing of consumption, and, finally, official regulation of the whole of production and consumption.”
-Ludwig Von Mises
“The Constitution is colorblind, and neither knows nor tolerates classes among citizens”
- John Marshall
"Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all rest being brought about by the natural course of things."
"...The net result of government credit has not been to increase the amount of wealth produced by the community but to reduce it, because the availiable real capital has been placed in the hands of the less efficient borrowers rather than in the hands of the more efficient and trustworthy."
"People are beginning to realize that the apparatus of government is costly. But what they do not know is that the burden falls inevitably on them."
-Frederic Bastiat, The Law
"The inherent vice of capitalism is the unequal sharing of the blessings. The inherent vice of socialism is the equal sharing of misery."
By Guest Blogger Jennifer Lee
Geoffrey P. Miller’s “Law and Economics versus Economic Analysis of Law” [Miller American Bankruptcy Institute Law Review, Winter 2011] advocates the terms “law and economics” and the “application of economic analysis onto the law” should be two separate and particular terms. More than a mere parsing of words, the author urges scholars to recognize, and apply, the distinction between the two terms rather than the traditional approach of interchangeability. Miller delineates the economic analysis of law as the “application of pure economic theory to legal materials,” whilst law and economics is “a genuine partnership of two disciplines, each with something to contribute.” [Ibid.] For Miller, the analysis of law and economics may initially be more challenging than the economic analysis of law…
Jennifer Lee is a GMU ES Guest Blogger currently pursuing a graduate degree in Actuarial Science at George Mason University. She is licensed to practice law in Virginia and the District of Columbia.
"Capitalism has become more responsive to what we want as individual purchasers of goods, but democracy has grown less responsive to what we want together as citizens."
“… I don't think our recent Great Recession is simply a Keynesian or monetarist or aggregate-demand story. I think real business-cycle theory has a lot to say about the event. One thing we have seen across the board in a lot of countries is what economists call the risk premium, it has gone up. Investors are more cautious. People are more afraid … some terrible economic event will happen that they hadn't foreseen. There's more worry about so-called black swans. So the risk premium is higher. We have a sector, banking, which we thought worked pretty well, and now we realize it had been working really quite horribly. So there's been a decline in the perceived quality of financial intermediation and also a significant real shock to housing and construction. So the real business-cycle model applies, too.”
-Tyler Cowen in Learn Liberty: Explaining the Great Recession
“Free trade is simply a policy of treating foreign goods and services no differently than domestic goods and services are treated. Free trade is a policy of allowing domestic consumers to buy from abroad just as freely as they can buy at home. Protectionism is a policy of discriminating against foreign goods and services, a policy of saying to domestic consumers, “If you want to buy foreign-made goods and services, you have to jump through some extra large hurdles to buy those goods and services.”
-Don Boudreaux in Learn Liberty: Free Trade vs. protectionism
“Taxes on capital, taxes on labor, inflation, bureaucratic regulation, minimum wage laws, are all - to different degrees - unnecessary slices of the wedge that stand between an individual's effort and reward for that effort.”
By Guest Blogger Brian Martens
During the last financial crisis we experienced a surge in financial and private sector debt that peaked around $17 trillion and $42.5 trillion, respectively, before retreating during the crisis. This was followed by an increase in Federal debt nearly matching GDP. The decrease in financial debt with respect to GDP and in total shows in part the deleveraging of many financial institutions in response to the crisis. The subsequent rise in public debt has alarmed many economists, but for what reasons exactly should economists be worried about high levels of public debt? Is it possible that the “sudden stops” that characterized the financial crisis also occur with respect to lending to central governments of industrialized nations, leading to a sovereign debt crisis or slower economic growth?
In 2010, the AEA published an article in their review from Reinhart and Rogoff (2010) on the relationship of public debt and GDP growth which documented the observation that as advanced countries passed a threshold of 90% public debt/GDP, median GDP growth slowed considerably. It is worth noting, however, that there were several countries included in this group who did not have their own sovereign currency, such as many Euro countries who do not have independent monetary policy to control interest rates and monetary easing during periods of crisis. It is also worth noting that during the period from 1946-2009, international monetary arrangements changed drastically, particularly the Bretton Woods System and the birth and growth of the EU. The collapse of the international gold exchange standard would also likely have had an effect on the level of debt a sovereign nation could support. Despite this, it is significant that the US has historically not performed well with public debt/GDP ratios above…
“Sound money and free banking are not impossible; they are merely illegal. Freedom of money and freedom of banking...are the principles that must guide our steps.”
Hans F. Sennholz
“People acting in their own self-interest is the fuel for all the discovery, innovation, and prosperity that powers the world.”
“All money is a matter of belief.”
“… you can't have a prosperous economy when the government is way overspending, raising tax rates, printing too much money, over regulating and restricting free trade. It just can't be done.”
“We all declare for liberty; but in using the same word we do not all mean the same thing. With some the word liberty may mean for each man to do as he pleases with himself, and the product of his labor; while with others, the same word may mean for some men to do as they please with other men, and the product of other men’s labor. Here are two, not only different, but incompatible things, called by the same name-liberty. And it follows that each of these things is, by the respective parties, called by two different and incompatible names- liberty and tyranny.”
The Economics Society is committed to the personal, professional, and academic development of all students interested in the study of economics.
The GMU Economics Society organizes lecture series, discussion sessions, and other interactions between professional economists and students.
We hope to meet the unique goals and desires of our members.
We will also have a monthly Economic Liberty Lecture Series and Law & Economics Seminar and other lectures throughout the semester.
Econ Society Photos
Get updates from us!