austrian63

Friedman: The U.S. Needs to Stimulate Innovation and Invention

I would disagree somewhat by saying that Mises and Hayek probably had an even better understanding of what makes a modern economy prosper.


On Jun 30 08:07 AM lorddarley wrote:

> Why is history a dusty pastime that we never learn from? I don't
> think there has been an economist since Adam Smith who really understood
> what makes a country prosperous, and what improves the lot of the
> great mass of its citizens. From his Wealth of Nations (coincidentally
> 1776):
>
> 1. Make something that people in other countries want to buy (i.e.
> nurture exports).
>
> 2. concentrate on making and selling high value products.
>
> 3. import the raw materials and produce from other countries made
> by cheaper labor.
>
> 4. don't be embarrassed by success.
>
> Smith knew that not everyone becomes "middle class" overnight, and
> it didn't trouble him. He recognized that there are divsions of labor.
>
>
> We have deluded ourselves in the US into thinking that Adam Smith
> is wrong headed, and that running a positive balance of trade, or
> recognizing that divisions of labor are natural, is sinful.
>
> Smith's economic principles are unavoidably correct. I wouldn't be
> surprised if there is a dog-eared copy or two in Peking.

Friedman: The U.S. Needs to Stimulate Innovation and Invention

Why would you assume that central planning can stimulate innovation?