Breaking News: My recommendation to invest in emerging markets is paying off. The Argentina Fund is now the top performing country fund in the world, and my best performing investment in 2024 (up 25% so far). President Javier Milei is selling his libertarian message to the world, speaking at Davos and the Milken Conference this year. Next stop: FreedomFest, which Forbes calls “one of the most significant free-market events in the world.”
We are making HISTORY. Here is your chance to meet Milei in person at FreedomFest, July 10-13, at the new Caesars Forum Convention Center in Las Vegas. Now is the time to buy your ticket before we sell out. Use code EAGLE50 when you register here, or call Hayley at 1-855-850-3733 ext. 202.
“A wise and frugal government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement.” — Thomas Jefferson
“Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes and a tolerable administration of justice: all the rest being brought about by the natural course of things.” — Adam Smith
I’m reading Joseph Stiglitz’s new book, “The Road to Freedom: Economics and the Good Society.” Available here.
Stiglitz is the former chief economist at the World Bank, a Nobel prize winner and the top economic advisor to President Bill Clinton.
We’ve been friends for many years, since I taught at Columbia Business School in 2004. He has supported by work on gross output (GO). Over the years, I’ve had a lively correspondence with him and his wife, Anya.
Unlike many academics, Joe (as he likes to be called informally) is always willing to engage in a friendly debate. We can disagree without being disagreeable.
As Thomas Jefferson once said, “I never consider a difference of opinion in politics, religion and philosophy as cause for withdrawing from a friend.”
Joe and I disagree strongly on what he calls “neoliberalism,” the philosophy of laissez-faire capitalism espoused by Friedrich Hayek, Milton Friedman, and Ayn Rand, among others.
His book title, “The Road to Freedom,” is written in contrast with Hayek’s “Road to Serfdom.”
He favors what he calls “progressive capitalism,” which entails a much larger role of government in the economy. His book says little good about capitalism itself. He states:
“Globally, government has played an important role in the countries with the highest growth rates… The current neoliberal economic system [free-market capitalism] is not environmentally, socially, politically and economically sustainable.” (p. 235)
Furthermore: “Without strong regulation, neoliberalism will destroy our planet.” (p. 20)
Strong words. Stiglitz favors more environmental, financial and economic regulation… progressive taxation… stronger unions, including the teachers’ unions… and a higher minimum wage.
I think his book should be re-entitled, “The Road to Stagflation.”
What’s Missing: This Amazing Graph
Stiglitz spends a lot of pages attacking the libertarian philosophy of limited government.
In doing so, he fails to address the most influential study in economic freedom ever produced — the Economic Freedom Index, which is published annually by the Fraser Institute in Canada and the Heritage Foundation in the United States. It is the first attempt by economists to demonstrate empirically the case of free-market capitalism, what Stiglitz calls “neoliberalism.”
Here’s the chart:
Source: The Heritage Foundation.
Clearly, countries with more economic freedom do better economically.
The Fraser Institute and Heritage Foundation also have studies showing that countries with higher levels of economic freedom enjoy a better environment, less poverty and a more fulfilling lifestyle.
Singapore is ranked #1 today in the Economic Freedom Index. Stiglitz fails to mention this example of good governance — government spending is only 10% of gross domestic product (GDP) there; they benefit from free trade, low taxes and the rule of law. See my recent report: From Third World to First World: Who Offers the Best Model of State Capitalism? – Mark Skousen
It’s easy to attack an ideology by “storytelling,” arguing as Stiglitz does that the market economy is responsible for all the evils of the world: “Unfettered markets have created many of the central problems we face, including inequalities, the climate crisis and America’s opioid crisis” (p. 279)
He also blames the market system for the Great Depression and the Financial Crisis of 2008 while ignoring government intervention in the economy that free-market economists like Hayek and Friedman have warned about.
Where to Find a Better ‘Road to Freedom’
My two books, “Economic Logic” (now in its 6th edition) and “The Making of Modern Economics” (4th edition) include a full discussion of the Economic Freedom Index, and why some countries are flourishing and others aren’t.
Learn Sound Economics from ‘Economic Logic’
Based on my “real world” experience, my textbook is very different, based on my living in six countries and traveling through all 50 states and through 80 countries.
It is now in its new 6th edition, published by Capital Press/Regnery. It’s an ideal gift to students or anyone who wants to learn the basics of inflation, taxation, economic growth and ideal government policies.
“Economic Logic” is THE guide to sound economics, all in one book (738 pages). It’s ideal for students and adults alike and is used in introductory courses in colleges around the country.
It is dedicated to Milton Friedman and Friedrich Hayek. Read the book and see why.
For all the details, including chapter headings, click here.
What Economists Are Saying
“Eureka! Skousen has done the impossible. Students love it! I will never use another textbook again.” — Harry Veryser, University of Detroit-Mercy
“Mark Skousen is the only economist I can understand.” — Dr. Lawrence Hayek
“An excellent balance of theory and the real world that no other text has achieved.” — Charles Baird, California State University, East Bay
“Better than any book out there! Skousen presents real business economics in a clear, provocative and logical fashion.” — Ian Mackechnie, University of Wales
“Perfect for any economics student — designed to maximize learning while minimizing monotony. Simple, direct and comprehensive.” — K. Au, Homeschool instructor
“My college econ classes, filled with perplexing theories like the paradox of thrift, GDP and Keynesian fiscal policy, were completely refuted by this excellent free-market textbook. Students, if your professors don’t use this text, get it for yourself so you can really understand the concepts of sound economics.” — Amazon review
He Read My Book Eight Times!!
Recently, I received a letter from an Englishman, who wrote:
“I am armchair economist and have consumed your book, ‘The Making of Modern Economics’ in print and audio eight times so far. It has become my economics encyclopaedia, prompting me to read/listen to many of the books you mention in the text as I broaden my understanding of economics.”
His reading my book eight times must be a record.
He has far surpassed John Mackey, the former CEO of Whole Foods Market, who wrote, “I’ve read Mark’s book three times. It’s fun to read on every page. I have recommended it to dozens of my friends.”
There’s a reason why my book has gone through four editions and is published by a major academic publisher (Routledge).
What’s ‘The Making of Modern Economics’ All About?
Here are its unique features:
It’s the only history with a hero, Adam Smith and his “system of natural liberty,” and a cunning plot: The father of free-market economics comes under attack by his enemies (socialists, Marxists and Keynesians) and is often left for dead, only to be rescued by his friends (French laissez-faire, Austrian, Chicago and supply-side schools) — and in the end triumphs with the collapse of the Berlin Wall and the collapse of the Soviet central-planning model.
It offers the most devastating critique of both Marxism and Keynesianism, the two biggest critiques of free-market capitalism.
It includes five chapters on the Austrian and Chicago schools of free markets.
It is the only history with illustrations, portraits and photographs.
Want to know more? Go here.
What Others Are Saying
Greg Feirman, manager of Top Gun Financial writes: “Skousen is a brilliant and prolific economist as well as writer of a popular financial newsletter, Forecasts & Strategies, for decades now. Because of his interest in financial markets, Skousen is an economist obsessed with the real-world applicability of his economic ideas. He has written over 20 books, including ‘The Making of Modern Economics’, the best history of modern economics around.”
The late great William F. Buckley, Jr., wrote, “I champion Skousen’s book to everyone. I keep it by my bedside and refer to it often. An absolutely ideal gift for college students.”
Richard Rahn states, “Mark Skousen has produced the single best book on virtually all of those who have had a significant impact in economics. It’s a delight to read cover to cover.”
And Milton Friedman wrote, “All histories of thought are BS — Before Skousen! It’s an excellent book, a sure bestseller.”
How to Order ‘Economic Logic’ and ‘Making of Modern Economics’ at a Super Discount
The price of “Economic Logic” on Amazon is $82 plus shipping, but if you order through www.skousenbooks.com, you pay only $44. I autograph each book and mail it at no extra charge anywhere in the 50 states.
“The Making of Modern Economics” is only $37 postpaid through www.skousenbooks.com. It’s also beautifully narrated as an audiobook by Roberton Dean on Amazon. Find it here.
Good investing, AEIOU,
Mark Skousen
You Nailed it!
Chapman Students (and Their Professor) Outperform the Market
“In the world of investing, being average means you are one of the best students in the class.” — Charles Ellis (“Maxims of Wall Street,” p. 191)
Every other year, I teach “financial economics” at Chapman University. I start the class with a stock picking contest, and then have students throw a dart at the stock listing in The Wall Street Journal. After three months, we pick a winner — who has the best performing stock, and did he or she beat the market.
Chapman students are smarter than you think. Time and time again, in bull markets, they beat the market because they know that to win the contest, you have to take big risks. As George Soros says, “To make big money, you have to bet on the unexpected.” (p. 193)
Indeed, after three months, my 30 students averaged a return of 4.9% compared to the Vanguard Stock Index of 3.7%. One student, betting on a leverage bitcoin stock, made a 71% return. 77% of the students made money. Nine beat the professor’s stock pick — my choice was up almost 16%.
My students also beat the darts, which rose only 1.7%.
In the last day of class, a dozen students approached me to buy a copy of “The Maxims of Wall Street.” (See http://www.skousenbooks.com). These students are going places. One student, Eden Gal, won the Lynne Doti “Best Student in Economics” award… Two other students, Faryal Ahsan and Austin Hamilton, won the annual Doti-Spogli Free Enterprise student essay contest on the topic, “How to Solve the Homeless Problem in California.” Using an econometric model, they found that one of the major causes of homelessness is minimum wage legislation!
Dean Henrik Cronqvist, Eden Gal, Mark Skousen, Faryal Ahsan, and Austin Hamilton at Chapman’s Student Awards Ceremony
They each won an American eagle gold coin and a free ticket to FreedomFest. Austin has a job with Skyworks, Inc., and Faryal is going to work for Goldman Sachs. Congratulations to them all.
