Basic Economics
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{519} Barun S. Mitra, “Dealing with Natural Disaster: Role of the Market,” Liberty and Hard Cases, edited by Tibor R. Machan (Stanford, CA: Hoover Institution Press, 2002), p. 46.
Chapter 15: Special Problems of Time and Risk
{520} Robert L. Bartley, “Economic Profit vs. Accounting Profit,” Wall Street Journal, June 2, 2003, p. A17.
{521} Bill McNabb, “Uncertainty Is the Enemy of Recovery,” Wall Street Journal, April 28, 2013, p. A17.
{522} James A. Smith, The Idea Brokers: Think Tanks and the Rise of the New Policy Elite (New York: The Free Press, 1991), p. 76.
{523} Michael Cabanatuan, “Bay Bridge Pause Cost $81 Million,” San Francisco Chronicle, December 8, 2005, p. B1.
{524} Caroline E. Mayer, “Personal Bankruptcy Filings Fall Sharply,” Washington Post, November 22, 2005, p. D3.
{525} Melvyn B. Krauss, Development Without Aid (New York: The Free Press, 1983), p. 30.
{526} Gunnar Myrdal, Asian Drama: An Inquiry into the Poverty of Nations (New York: Pantheon, 1968), Volume II, p. 832.
{527} Nicholas D. Kristof and Sheryl WuDunn, Thunder from the East (New York: Knopf, 2000), p. 257.
{528} Rose Brady, Kapitalizm: Russia’s Struggle to Free Its Economy (New Haven: Yale University Press, 1999), p. 7.
{529} Ibid., pp. 10–11.
{530} Kathleen Pender, “S&P Lowers California’s Bond Rating,” San Francisco Chronicle, April 25, 2001, p. A1; John Hill, “State’s Bond Rating Lowered Again,” Sacramento Bee, November 22, 2001, p. A3.
PART V: THE NATIONAL ECONOMY
Chapter 16: National Output
{531} Theodore Dalrymple, Our Culture, What’s Left of It: The Mandarins and the Masses (Chicago: Ivan R. Dee, 2005), p. 191.
{532} Milton Friedman and Anna Jacobson Schwartz, A Monetary History of the United States: 1867–1960 (Princeton: Princeton University Press, 1963), p. 352.
{533} “GDP and Other Major NIPA Series, 1929–2003,” Survey of Current Business, February 2004, p. 157.
{534} Economic Report of the President, 2006 (Washington: U.S. Government Printing Office, 2006), p. 324.
{535} Jeffry A. Frieden, Global Capitalism: Its Fall and Rise in the Twentieth Century (New York: W.W. Norton, 2006), p. 176.
{536} Vance Packard, The Waste Makers (New York: D. McKay, Co., 1960), p. 19.
{537} Ibid., p. 7.
{538} FDR’s Fireside Chats, edited by Russell D. Buhite and David W. Levy (Norman, OK: University of Oklahoma Press, 1992), p. 113.
{539} The American Pageant: A History of the Republic, eleventh edition, edited by Thomas A. Bailey, David M. Kennedy, and Lizabeth Cohen (Boston: Houghton Mifflin, 1998), Volume II, p. 787.
{540} “GDP and Other Major NIPA Series, 1929–2007: II,” Survey of Current Business, August 2007, pp. 168, 173.
{541} Paul R. Lally, “Fixed Assets and Consumer Durable Goods,” Survey of Current Business, May 2004, p. 9.
{542} “The Price of Age,” The Economist, December 23, 2000, p. 91.
{543} W. Michael Cox and Richard Alm, Myths of Rich & Poor: Why We’re Better Off Than We Think (New York: Basic Books, 1999), p. 32.
{544} “Luxury Lineup,” Consumer Reports, September 2003, p. 52.
{545} National Association of Home Builders, Housing Market Statistics, November 2001, p. 29.
{546} W. Michael Cox and Richard Alm, Myths of Rich & Poor, p. 21.
{547} The Economist, Pocket World in Figures: 2010 edition (London: Profile Books, 2009), p. 20.
{548} Herbert Stein and Murray Foss, The Illustrated Guide to the American Economy, third edition (Washington: AEI Press, 1999), p. 6.
{549} The Economist, Pocket World in Figures: 2012 edition (London: Profile Books, 2011), p. 27.
{550} Ibid., p. 26.
{551} “Climbing Back,” The Economist, January 21, 2006, p. 69.
{552} “Where Money Seems to Talk,” The Economist, July 14, 2007, p. 63.
{553} The Economist, Pocket World in Figures: 2012 edition, p. 24.
{554} Ibid., pp. 132, 170.
{555} Claudia Goldin and Lawrence F. Katz, “Decreasing (and Then Increasing) Inequality in America: A Tale of Two Half-Centuries,” The Causes and Consequences of Increasing Inequality, edited by Finis Welch (Chicago: University of Chicago Press, 2001), pp. 38, 39.
{556} Jonathan Fuerbringer, “Year’s Big Rally Helps Investors Regain Ground,” New York Times, January 1, 2004, p. C5.
{557} Daniel J. Boorstin, The Americans, Volume III: The Democratic Experience (New York: Random House, 1973), p. 97.
Chapter 17: Money and the Banking System
{558} Milton Friedman, Capitalism and Freedom, fortieth anniversary edition (Chicago: University of Chicago Press, 2002), p. 198.
{559} American Bankers Association, The Business of Banking: What Every Policy Maker Needs to Know (Washington: American Bankers Association, 2012), pp. 6, 8.
{560} Paul Johnson, A History of the American People (New York: Harper Perennial, 1997), p. 75.
{561} Allan McPhee, The Economic Revolution in British West Africa, second edition (London: F. Cass, 1971), p. 233.
{562} R.A. Radford, “The Economic Organisation of a P.O.W. Camp,” Economica, Vol. 12, No. 48 (November 1945), pp. 189–201.
{563} Nikolai Shmelev and Vladimir Popov, The Turning Point: Revitalizing the Soviet Economy (New York: Doubleday, 1989), p. 8.
{564} Richard C. Paddock, “Pocket Change for Giants,” Los Angeles Times, June 30, 2006, p. A1.
{565} Hector Tobar, “Where to Swap Till You Drop,” Los Angeles Times, May 6, 2002, p. A5.
{566} Amity Shlaes, The Forgotten Man: A New History of the Great Depression (New York: HarperCollins, 2007), p. 139.
{567} John Maynard Keynes, The Economic Consequences of the Peace (New York: Harcourt, Brace and Howe, 1920), p. 235.
{568} James R. Harrigan, “Runaway Debt Inevitably Will Bring Inflation,” Investor’s Business Daily, January 11, 2013, p. A15.
{569} Robert E. Wright, The First Wall Street (Chicago: University of Chicago Press, 2005), p. 36.
{570} Catherine Eagleton and Jonathan Williams, Money: A History (London: British Museum Press, 1997), p. 150.
{571} Michael K. Salemi, “Hyperinflation,” The Fortune Encyclopedia of Economics, edited by David Henderson (New York: Warner Books, 1993), p. 210.
{572} Michael Wines, “Caps on Prices Only Deepen Zimbabweans’ Misery,” New York Times, August 2, 2007, p. A1.
{573} Paul Johnson, A History of the American People, p. 463.
{574} Peter A. McKay, “Hoarders Drive Up Gold, Despite Slump in Jewelry Sales,” Wall Street Journal, October 8, 2002, p. C1.
{575} “The Case for and Against Gold,” Wall Street Journal, March 14, 2011, p. R1.
{576} Nelson D. Schwartz, “Financial Uncertainty Restores Glitter to an Old Refuge, Gold,” New York Times, June 13, 2010, p. A4.
{577} John Maynard Keynes, Essays in Persuasion (London: Rupert Hart-Davis, 1952), p. 86.
{578} Judith Matloff, “Russians Replay ‘Bad Old Days’,” Christian Science Monitor, August 31, 1998, p. 1.
{579} Nikolai Shmelev and Vladimir Popov, The Turning Point, p. 6.
{580} Rose Brady, Kapitalizm: Russia’s Struggle to Free Its Economy (New Haven: Yale University Press, 1999), p. 11.
{581} Gordon A. Craig, Germany: 1866–1945 (New York: Oxford University Press, 1978), p. 450.
{582} Jim Powell, Wilson’s War: How Woodrow Wilson’s Great Blunder Led to Hitler, Lenin, Stalin, and World War II (New York: Crown Forum, 2005), p. 4.
{583} Christopher Conkey and Michael M. Phillips, “Jump in Prices Stirs Rate Concerns,” Wall Street Journal, April 20, 2006, p. A2.
{584} “Adiós to Poverty, Hola to Consumption,” The Economist, August 18, 2007, p. 21.
{585} Jeffry A. Frieden, Global Capitalism: Its Fall and Rise in the Twentieth Century (New York: W.W. Norton, 2006), p. 8.
{586} Milton Friedman and Anna Jacobson Schwar
tz, A Monetary History of the United States: 1867–1960 (Princeton: Princeton University Press, 1963), p. 351.
{587} Ibid., pp. 302–305.
{588} Allan H. Meltzer, A History of the Federal Reserve (Chicago: University of Chicago Press, 2003), p. 3.
{589} Milton Friedman and Anna Jacobson Schwartz, A Monetary History of the United States, pp. 407–419.
{590} John Kenneth Galbraith, The Great Crash, 1929 (Boston: Houghton Mifflin, 1997), p. 27.
{591} Milton Friedman and Anna Jacobson Schwartz, A Monetary History of the United States, p. 304.
{592} Josef Schumpeter, “The Present World Depression: A Tentative Diagnosis,” American Economic Review, Vol. 21, No. 1 (March 1931), p. 181.
{593} Jim Powell, FDR’s Folly: How Roosevelt and His New Deal Prolonged the Great Depression (New York: Crown Forum, 2003), p. 92.
{594} Herbert Hoover, The Memoirs of Herbert Hoover, Volume III: The Great Depression 1929–1941 (New York: The Macmillan Company, 1952), p. 50.
{595} John Maynard Keynes, Essays in Persuasion, p. 283.
{596} Jeffry A. Frieden, Global Capitalism, p. 13.
{597} Ibid., p. 14.
{598} Ibid., pp. 16, 17.
{599} Jack Ewing, “Germany Will Cart Home Some of Its Buried Treasure,” New York Times, January 17, 2013, p. B1.
{600} Visa, Inc., “Visa Inc. Corporate Overview,” December 31, 2012, p. 2; U.S. Census Bureau, Statistical Abstract of the United States: 2012 (Washington: Government Printing Office, 2011), p. 740; Michael Saylor, The Mobile Wave: How Mobile Intelligence Will Change Everything (New York: Vanguard Press, 2012), p. 107.
{601} Laura Cohn and Richard S. Dunham, “Is the Natural Gas Crunch About to Become a Crisis?” BusinessWeek, June 16, 2003, p. 45.
{602} Sam Zuckerman, “Fed’s New Wording Worries Wall Street,” San Francisco Chronicle, January 29, 2004, p. B1.
{603} Ibid.
{604} Peter Eavis, “The Stimulus Comment That Agitated Traders,” New York Times, June 14, 2013, pp. B1, B6.
{605} “The Banks That Don’t Lend,” The Economist, April 28, 2001, pp. 77, 78.
{606} Ibid.
{607} “Paradise Lost,” a special report on international banking, The Economist, May 17, 2008, p. 23.
{608} “Foreseeing the Future,” The Economist, March 15, 2003, pp. 69–70.
{609} Heather Timmons, “India’s Banks Are Seen as Antiquated and Unproductive,” New York Times, March 23, 2007, p. C6.
{610} Deepak Lal, Reviving the Invisible Hand: The Case for Classical Liberalism in the Twenty-First Century (Princeton: Princeton University Press, 2006), p. 170.
{611} Benjamin M. Anderson, Economics and Public Welfare: A Financial and Economic History of the United States, 1914–46 (Indianapolis: Liberty Press, 1979), p. 308.
{612} Milton Friedman and Anna Jacobson Schwartz, A Monetary History of the United States, p. 352.
{613} Paul Sperry, “Smoking Gun Study on Subprime Fiasco,” Investor’s Business Daily, December 21, 2012, p. A1.
Chapter 18: Government Functions
{614} Richard Epstein, Overdose: How Excessive Government Regulation Stifles Pharmaceutical Innovation (New Haven: Yale University Press, 2006), p. 15.
{615} Daniel Yergin and Joseph Stanislaw, The Commanding Heights: The Battle Between Government and the Marketplace That Is Remaking the Modern World (New York: Simon & Schuster, 1998), p. 10.
{616} Daniel Michaels, “Kinshasa Is Poor, Scary and a Boon for Air France,” Wall Street Journal, April 30, 2002, p. A1.
{617} “Policing the Police,” The Economist, May 4, 2002, p. 37.
{618} Michael Slackman, “Tycoon Gets Death in Singer’s Murder, Stunning an Egypt Leery of Its Courts,” New York Times, May 22, 2009, p. A4.
{619} “The Short Arm of the Law,” The Economist, March 2, 2002, p. 65.
{620} Ibid.
{621} Transparency International, Transparency International Corruption Perceptions Index 2004 (Berlin: Transparency International Secretariat, 2004), p. 5.
{622} John P. McKay, Pioneers for Profit: Foreign Entrepreneurship and Russian Industrialization 1885–1913 (Chicago: University of Chicago Press, 1970), p. 187.
{623} Raghuram Rajan and Luigi Zingales, Saving Capitalism from the Capitalists (New York: Crown Business, 2003), p. 57.
{624} Bryon MacWilliams, “Reports of Bribe-Taking at Russian Universities Have Increased, Authorities Say,” The Chronicle of Higher Education, April 18, 2002 (online).
{625} “Friends in High Places,” The Economist, November 1, 2003, p. 63.
{626} John Stuart Mill, The Collected Works of John Stuart Mill, Volume III: Principles of Political Economy with Some of Their Applications to Social Philosophy (Toronto: University of Toronto Press, 1965), p. 882.
{627} Gurcharan Das, India Unbound: The Social and Economic Revolution from Independence to the Global Information Age (New York: Alfred A. Knopf, 2001), p. 183.
{628} Ibid.
{629} “Doing Business,” The Economist, October 6, 2007, p. 112.
{630} Nikolai Shmelev and Vladimir Popov, The Turning Point: Revitalizing the Soviet Economy (New York: Doubleday, 1989), p. 109.
{631} Land Use and Housing on the San Francisco Peninsula, edited by Thomas M. Hagler (Stanford, CA: Stanford Environmental Law Society, 1983), Volume IV.
{632} Nikolai Shmelev and Vladimir Popov, The Turning Point, p. 261.
{633} Ibid., p. 147.
{634} “The Economy of Trust: An Interview with Kenneth Arrow,” Religion & Liberty, Summer 2006, p. 3.
{635} Angelo Codevilla, The Character of Nations: How Politics Makes and Breaks Prosperity, Family, and Civility (New York: Basic Book, 2009), p. 42.
{636} “Five-Fingered Discounts,” The Economist, October 23, 2010, p. 81.
{637} William Easterly, The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good (New York: The Penguin Press, 2006), p. 80.
{638} David Brooks, “The Culture of Nations,” New York Times, April 13, 2006, section 4, p. 11.
{639} Gurcharan Das, India Unbound, p. 143.
{640} “Red Tape and Blue Sparks,” part of a survey on India’s economy, The Economist, June 2, 2001, p. 9.
{641} Renée Rose Shield, Diamond Stories: Enduring Change on 47th Street (Ithaca, NY: Cornell University Press, 2002), Chapter 5.
{642} William Easterly, The White Man’s Burden, pp. 79, 80.
{643} Ibid., p. 81.
{644} William Tucker, Zoning, Rent Control and Affordable Housing (Washington: Cato Institute, 1991), p. 43.
{645} Tim Harford, The Undercover Economist: Exposing Why the Rich Are Rich, the Poor Are Poor, and Why You Can Never Buy a Decent Used Car (New York: Oxford University Press, 2006), p. 188.
{646} Rose Brady, Kapitalizm: Russia’s Struggle to Free Its Economy (New Haven: Yale University Press, 1999), p. 3.
{647} John Stossel, Give Me a Break: How I Exposed Hucksters, Cheats, and Scam Artists and Became the Scourge of the Liberal Media… (New York: HarperCollins, 2004), p. 250.
{648} “Aspiring Africa,” The Economist, March 2, 2013, p. 12.
{649} Milton Friedman, Capitalism and Freedom (Chicago: University of Chicago Press, 1962), p. 14.
{650} Tyler Cowen “Public Goods and Externalities,” The Fortune Encyclopedia of Economics, edited by David Henderson (New York: Warner Books, 1993), pp. 74–77.
{651} Daniel P. Moynihan, Maximum Feasible Misunderstanding: Community Action in the War on Poverty (New York: The Free Press, 1969), p. xv.
{652} Daniel Yergin and Joseph Stanislaw, The Commanding Heights, pp. 62–63.
{653} Ibid., p. 63.
{654} Herbert Stein, “Wage and Price Controls: 25 Years Later,” Wall Street Journal, August 15, 1996, p. A10.
{655} Gurcharan Das, India Unbound, p. 313.
{656} Herbert Stein, Presidential Economics, second edition (Washington: American Enterprise Institute, 1988), pp. 194–195.
{657} John Pike, “Can Toxins Lead to Healthier Lives?” Insight on the News, January 19, 2004, p. 34.
{658} David Stipp, “A Little Poison Can Be Good for You,” Fortune, June 9, 2003, pp. 54–56.
{659} Stephen Breyer, Breaking the Vicious Circle: Toward Effective Risk Regulation (Cambridge, MA: Harvard University Press, 1993), pp. 11, 12.
{660} Ibid., p. 12.
{661} William Carlsen, “Congress Not Told of MTBE Dangers,” San Francisco Chronicle, August 19, 2001, p. A1.
{662} U.S. Small Business Administration, The Impact of Regulatory Costs on Small Firms, September 2010, p. 7.
{663} “Savings and Souls,” The Economist, September 6, 2008, p. 82.
{664} Floyd Norris and Christine Bockelmann, editors, The New York Times Century of Business (New York: McGraw-Hill, 2000), p. 86.
{665} Eric Bellman, “As Economy Zooms, India’s Postmen Struggle to Adapt,” Wall Street Journal, October 3, 2006, pp. A1, A12.
{666} John Stuart Mill, The Collected Works of John Stuart Mill, Volume XVIII: Essays on Politics and Society (Toronto: University of Toronto Press, 1977), p. 306.
Chapter 19: Government Finance
{667} Arthur F. Burns, “The Anguish of Central Banking,” 1979 Per Jacobsson Lecture, September 30, 1979, p. 13.
{668} Economic Report of the President, 2014 (Washington: U.S. Government Printing Office, 2014), p. 389.
{669} “Maryland’s Mobile Millionaires,” Wall Street Journal, March 12, 2010, p. A18.
{670} “Ducking Higher Taxes,” Wall Street Journal, December 21, 2010, p. A18.
{671} Arthur Laffer, “Real Relief: A Capital-Gains Tax Cut,” Wall Street Journal, May 14, 2001, p. A18.
{672} “Iceland’s Laffer Curve,” Wall Street Journal, March 12, 2007, p. A14.
{673} David Walker and Mike Foster, “New U.K. Tax Sends Hedge Funds Fleeing,” Wall Street Journal, August 25, 2009, p. C2.
{674} Michael T. Darda, “The Inflation Threat to Capital Formation,” Wall Street Journal, April 10, 2008, p. A15.
{675} Economic Report of the President, 2010 (Washington: U.S. Government Printing Office, 2010), pp. 423, 424.