In his most recent Substack Scott Sumner lists nine principles he continues to favor despite their fall from favor in the present “economic consensus”:
- Fiat money central banks can always boost nominal GDP, if they choose to do so. They can also restrain inflation, if they choose to do so.
- We should not pay interest on bank reserves.
- We should not use fiscal stabilization policy.
- We should balance the budget, at least in real terms.
- We should have free trade with countries that don’t invade their neighbors.
- Anti-trust should focus on high prices, not low prices.
- We should avoid so-called industrial policies. (Check out Richard’s Hanania’s post on the subject.)
- We should avoid rent controls, price controls and government ownership of business.
- We should end residential zoning restrictions and move toward school choice, health saving accounts, carbon taxes, congestion pricing and progressive consumption taxes.
By and large I agree with him.
Okay, define “free trade”.
Also, clarify meaning of “don’t invade their neighbors”.
Example, at the retail location where i work, we see almost no actual Americans. It’s either Brazilians or Indians, with the occasional arab thrown in. In fact, in the last six months we’ve gone from almost no Indians to having them occasionally run the Brazilians out of the store with their numbers. Given Brazilian attitudes towards personal space (they don’t believe in it), this has been incredible.
Functionally we have been invaded by both India and Brazil. And the previous invaders (Haitians and PRs) can’t hold the tide back.
What do?