American Elephants

Why is Economic Freedom So Hard To Understand? by The Elephant's Child

John Taylor Economisat

John B. Taylor is a professor of economics at Stanford University. He is also a fellow with the Hoover Institution, and has served several presidents on their Council of Economic Advisers. He listed, recently:

The Principles of Economic Freedom

  1. predictability — people want to know what’s coming. In a democracy you can’t just order this fixed.
  2. rule of law — we bailed out Bear Stearns, Chrysler, did special favors for Fannie & Freddie with regulatory capture.
  3. incentives — the price system provides incentives — prices go up — people buy less — are what motivates people. Keep it simple.
  4. the free market system — it works.
  5. a limited role for government — cost/benefit analysis, usually limited makes for sensible deciding.

Not complicated. Just a few simple bits of common sense. If you have time this weekend, do watch Dr. Taylor’s speech at the Center for Ethics on the “Ethics of Wealth ” series. I know, I know, it’s long, but you would pay a hefty fee to attend, or for a college class at Stanford., and here it’s free. A better deal than your neighborhood cineplex.

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