The False History of American Capitalism | Donald Boudreaux | Ep. 64

This book, written by Milton Friedman and Anna J. Schwartz, is a landmark work in economic history. It argues that changes in the money supply profoundly influenced the U.S. economy, particularly during significant economic events such as the Great Depression. The authors criticize the Federal Reserve for its handling of monetary policy, especially during the Great Depression, and emphasize the importance of steady control of the money supply in managing economic fluctuations. The book also discusses the role of the gold standard, the impact of bank failures, and the decision-making processes within the Federal Reserve.

Published in 1776, 'The Wealth of Nations' is Adam Smith's magnum opus that laid the groundwork for modern economics. The book critiques mercantilist economic theories and introduces the concept of the 'invisible hand,' which describes how individual self-interest leads to societal benefit. It emphasizes the division of labor, the accumulation of capital, and the importance of free markets. Smith argues that a nation's wealth is not measured by its gold and silver reserves but by the stream of goods and services it produces. The book also outlines the core functions of government, such as maintaining defense, enforcing civil law, and promoting education, while advocating for limited government intervention in market activities.

Written between 1842 and 1844, this book is a detailed account of the living conditions of the working class in England, particularly in industrial cities like Manchester and Liverpool. Engels, who was influenced by Hegel's philosophy and later collaborated with Karl Marx, describes the dire conditions faced by factory workers, including long working hours, low wages, high mortality rates, and the lack of social and economic security. The book highlights the negative impacts of the Industrial Revolution on the working class, portraying them as 'slaves' of the industrial system. It remains a significant contribution to the history of the workers' rights movement and modern socialist theory.

Phil Gramm and Donald J. Boudreaux examine seven pivotal events in American history, arguing that government intervention, rather than capitalism, poses the greatest threat to economic freedom. They challenge conventional wisdom by presenting a factual, non-partisan analysis of these events, including the Industrial Revolution, the Great Depression, and the Great Recession.