Watch this (of course, reading Hayek is absolutely mandatory!)
It is very unfortunate that we have fools like Paul Krugman and Jeffrey Sachs on this show, displaying their idiocy for everyone to see. And there are no genuine economists on this show (by which I mean people like Peter Boettke who understand Hayek's entire story) on this video.
Hayek has been severely shortchanged in this movie. He was a public choice theorist, not just monetary or business cycle theorist. And much, much more. But for those curious, this is a chance to understand the BASICS of liberty.
In my view the cause of 2008 global financial crisis was CLEARLY and UNEQUIVOCALLY government. See: http://sabhlokcity.com/2009/01/building-a-monetary-and-financial-system-for-a-free-society/. (Hayek, I hope, would have endorsed this perspective.)
And in my view, ALL "Keynesian" stimulus spending since then has made things worse for the West. Fortunately, in countries like Australia, the stimulus was only a small amount – within the range of normal wastage by government: about 10 per cent of GDP each year.
[Btw, I must add that while I agree with Friedman on many things, I'm not a monetarist. I am with Hayek on the importance of liberty - including liberty of money. True, if push comes to shove, and a free market in money is not an option, I'm happier with Friedman's idea of a machine that generates a regular amount of money according to a formula, than a human central banker.]
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