Adam Smith critiques the Deficit Reduction Commission
comments powered by Disqus
Allan Walstad - 12/10/2010
Thanks. Sorry I didn't get back here earlier. I was not under the impression that Smith or the other classicals wanted to "free markets from rent and interest," either. Does that even make sense?
Mark Brady - 12/9/2010
Good question. Certainly, classical school economists disagreed vigorously among themselves over theory and policy, not least because their ideas evolved over the best part of a century from the Wealth of Nations to the eve of the Marginal Revolution. That said, they believed the state performed essential functions that would necessarily require taxation, and it was widely held that taxation of land rents would be the least harmful form of taxation. The reference to the "government power to ... regulate prices to keep them in line with socially necessary costs of production" is a mystery to me right now.
Allan Walstad - 12/8/2010
Hudson: "Their [classical economists'] idea was to free markets from rent and interest, not to dismantle government power to tax and regulate prices to keep them in line with socially necessary costs of production."
Is that correct?
- Shipwreck Found Under World Trade Center Traced Back To Colonial Era Philadelphia
- Bob Dallek in the NYT gives a rave review of John Dean's history of Watergate cover-up
- Ex-President George W. Bush Authors Book About His Father
- Tears, and Anger, as Militants Destroy Iraq City’s Relics
- Europe notes 100th anniversary of World War I
- Why Benny Morris is both right and wrong
- Professor Ilan Pappé: Israel Has Chosen to be a 'Racist Apartheid State'
- History Professor: Convicted Cop Killer Mumia Should Be Celebrated Like Martin Luther King Jr. in Schools
- Robert Drew, Cinema Verite Documentarian, Dies at 90
- Rick Perlstein: “Ronald Reagan absolved America almost in a priestly role not to have to contend with sin. The consequences are all around us today”