Adam Smith Reveals His (Invisible) Hand

“Adam Smith had one overwhelmingly important triumph: he put into the center of economics the systematic analysis of the behavior of individuals pursuing their self-interest under conditions of competition.”—George Stigler (emphasis added) Critics of laissez faire—from Cambridge economic historian Emma Rothschild to British Labor Party leader Gordon Brown—have recently attempted to wrestle Adam Smith out [...]

Consumer Spending Drives the Economy?

Consumer spending makes up more than 70 percent of the economy, and it usually drives growth during economic recoveries.” —“Consumers Give Boost to Economy,” New York Times, May 1 Every quarter, when the government releases its latest GDP figures, we hear the familiar refrain: “What the consumer does is vital for economic growth.” “If the [...]

The Economics of Ecology: Angry Planet or Beautiful World?

“The bright promise of a new millennium is now clouded by unprecedented threats to humanity’s future.” -WORLDWATCH INSTITUTE, 20001 “We know that the environment is not in good shape. . . . My claim is that things are improving.” -BJØRN LOMBORG2 Bjørn Lomborg is a Danish professor of statistics who was an environmental activist and [...]

From The Presidents Desk: From Poverty to Riches: Is There a Magic Elixir?

The Right to Be Left Alone

“The makers of the Constitution conferred the most comprehensive of rights and the right most valued by all civilized men—the right to be let alone.” -Justice Louis D. Brandeis According to Thomas Jefferson and the Declaration of Independence, one of the “repeated injuries and usurpations” committed against the American people by the King of England [...]

Poverty and Wealth: India Versus Hong Kong

“The government of India regulates nearly everything, so there’s very little progress; whereas in Hong Kong the government keeps its hands off . . . and the standard of living has multiplied.” -JOHN TEMPLETON1 The mutual fund magnate John Templeton traveled around the world during the 1930s, noting in particular the extreme poverty in two [...]

Peace on Earth, Good Will Toward Men Through Capitalism and Freedom!

“A great multitude of religious sects . . . might in time [become] free of every mixture of absurdity, imposture, of fanaticism.” —Adam Smith1 In this time of thanksgiving and holiday cheer, we here at the Foundation for Economic Education wish everyone peace, prosperity, and happiness. Leonard Read, our founder, wrote that freedom of choice [...]

FEE’s Goal: From Candlestick to Lighthouse

“Those of us interested in an improved perception, awareness, consciousness of the freedom philosophy on the part of others have only to increase our own candle power.” — Leonard E. Read 1 Becoming the president of the Foundation for Economic Education fulfills a lifelong desire of mine to excise bad thinking from the public arena [...]

Whatever Happened to the Egyptians?

“Governments are generally reluctant to admit mistakes and to change mistaken policies until much harm has been done.” —P. T. Bauer and B. S. Yamey 1 In Whatever Happened to the Egyptians? (American University in Cairo Press, 2000), a popular book in Egypt, author Galan Amin raises a good question. Thousands of years ago Egypt [...]