Thomas Palley

Milton Friedman died on November 16, 2006 at the age of 94. Without doubt, Friedman was one of the most influential (perhaps the most influential) economists of the second half of the twentieth century. Not only did he contribute to reviving belief in the economic efficacy of the market system, he also had a profound political impact by linking capitalism with freedom. (more…)

Recently, there has been growing recognition of the enormous increase in U.S. income inequality that has occurred over the last twenty-five years, bringing back inequality levels not seen since 1929. Paul Krugman has written of the danger of a new oligarchy, whose wealth is such that it may be able to control an economy and society even as large as the United States. (more…)

Over the last several years the U.S. trade deficit has persistently set new records, hitting $717 billion in 2005, equal to almost 6 percent of GDP. China, in particular has contributed to the deficit, and now accounts for just shy of one-third of the total. By any historical standard, the economic warning lights are flashing red. (more…)

Many Americans have rightly identified China, uncontrolled trade deficits, and Wal-Mart style competition as looming threats to the American economy. However, they remain hard-pressed countering the free market/free trade story of mainstream economists that these are all for America’s long run benefit. (more…)

For the last three decades laissez-faire conservatives have sought to systematically discredit the ideas known as “Keynesianism.” This assault has had deleterious consequences for economic policy and public economic understandings. It is time for Keynesians to fight back. (more…)