I am back in Australia in the technical sense that I may be found at the Chinese Economic Society Australia meeting in Cairns but it was a long flight from Las Vegas, most of which was spent reading Donald Trump’s The Art of the Deal. More on that later but let me tell you about CESA and my presentation. Although I presented the paper at Freedomfest, with its focus on the failure of Austrians to take on Keynesians with all the venom they deserve, the paper was written for the Chinese who have become interested in supply-side economics. Although Keynes remains dominant in China, as he is everywhere (and you are kidding yourself if you think he’s not), the Chinese are interested in alternatives, with supply-side economics their own specific area of interest. And as I argue, you cannot find a supply-side model outside the classical economics of John Stuart Mill and Henry Clay. Here’s the list of modern schools, in a highly aggregated way:
Keynesian (which includes monetarists)
Only classical specifically incorporates all of the elements needed for clarity in economic thought: the entrepreneur, value adding as the core concept, Say’s Law, a complete rejection of demand as a macro variable, and a theory of recession based on disorder within the structure of production. And I have to tell you that I have had one of the best receptions to a presentation of mine ever. I should also add that my presentation in Las Vegas was attended by the great George Gilder, co-inventor of supply-side economics with Art Laffer during the Reagan Revolution. We need to do it again, but interestingly it seems as if the Chinese are now way ahead of the game.