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Contents About. By: Z. Yangwen , H. Liu and M. Pages: i—xiv.

Enhance. Enhance. Enhance

By: Michael Szonyi and Hong Liu. By: Immanuel Wallerstein. Pages: 13— Pages: 25— By: Michael Charney. Pages: 39— By: Meredith Oyen. Pages: 59— By: Lu Yan. Pages: 95— By: Zheng Yangwen. Pages: — By: Hong Liu. So without informing the Allies, Erhard went on the radio and made a startling announcement. Lucius Clay, the man in charge of occupied Germany, demanded to know what Erhard thought he was doing.

You have changed the Allied price controls. People stopped hoarding, and goods not seen for 10 years went on sale. Instead of nothing being in the windows of the shops, everything started to come up. And that began the German economic miracle. Within a few years, Germany's social market economy overtook Britain's more planned economy. But back then, nobody wanted to model themselves on Germany.

Most countries preferred to plan their economies. Mahatma Gandhi was the father of independence. His economic ideal was a simple India of self-sufficient villages. Pandhit Nehru, the first prime minister, wanted to industrialize and combine British parliamentary democracy with Soviet-style central planning. You talk of any economist in the world, and they were advising the Indian government. And the advice was, you must have a state-led model of industrial growth; the public sector must occupy what came to be called the commanding heights of the economy.

And that's why steel, coal, machine tools, capital goods, all the areas of heavy industry were in the public sector and not in the private sector. And there was this genius statistician, Mahalanobis, who was head of the Indian Statistical Institute. The brilliant Mahalanobis succeeded in expressing the entire Indian economy in a single mathematical formula. And that made Mahalanobis very influential. Across the developing world, socialism, planning, government control, regulation, and ownership -- these became the gospel. All over Africa, people looked to socialism to lead them out of poverty.

Across South America, governments chose state control as the way to modernize. The apparent success of communist countries like the Soviet Union and China seemed to show the way. Chapter Chicago Against The Tide []. Chicago is geographically isolated. This affects Chicago's intellectual influence in many more areas than economics. Eight professors and another 11 economists from Chicago went on to win Nobel Prizes. Gary Becker is one of them. I had been a very good student at Princeton. My first day in Friedman's class he raised a question.

I answered. He said, "That's no answer; that's just rephrasing the question. People were interested in ideas and argument and not in making sure you didn't ruffle anybody's feathers. ARNOLD HARBERGER, Professor Emeritus, University of Chicago: If you're sitting in a seminar room and somebody up there is saying something which if imbibed by your students who are sitting in that same room is going to lead them astray, it's up to you to call that guy right now and not later, and that, I think, is sort of the spirit that prevailed in the Chicago workshop system.

There wasn't that much fighting in the lunches. They were pretty cordial.

Gods at War: Defeating the Idols that Battle for Your Heart by Kyle Idleman

And one man came to dominate those debates. If you want to try to ignore them, you ignore them at your peril. If you find a way of ordering your life which harnesses these forces to the benefit of society, that's the way to go.


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Nineteen years after he died, his face was on the cover of Time magazine. The economic advice that economists gave to policymakers said the only reason you have bad economic outcomes is because the government's not doing enough. It sounds almost like central planning, doesn't it?

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The Keynesian consensus was summed up when that most Ivy League of presidents, John Kennedy, received an honorary degree from Yale. President, It might be said now that I have the best of both worlds -- a Harvard education and a Yale degree. The battle of ideas was over.

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That speech suggested that we had won over Kennedy. We had won the heart and mind of the president. Europe, Japan, and America all saw high economic growth and rising standards of living.

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People enjoyed a prosperity undreamed of at the end of the war. Chapter The Specter of Stagflation []. The success of mixed economies made his free-market theories, and Hayek himself, seem more irrelevant than ever. His ideas were not fashionable. Nobody seemed to listen to him. Nobody seemed to agree with him. He was alone. But the outside world was beginning to change. Skimming the newspaper in his usual restaurant, Hayek read how inflation and unemployment were rising at the same time. There was a new word to describe it: "stagflation.

You had two things at the same time, which under the Keynesian view would have been impossible.

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You had stagnation in the economy, high level of unemployment. You had inflation, with prices rising rapidly. Milton Friedman was a special advisor, and George Shultz was in charge of the budget.

He tried to spend his way out of trouble. To add insult to injury, he declared, "Now I am a Keynesian. Indeed, one congressman wrote to him and said, "Mr. President, I'm going to have to burn all of my old speeches. Ben Stein, the quiz-show host, was a junior speechwriter in the White House, and his father was at the meeting.

The battle for hearts and minds.

Nixon, and there's George Shultz right behind him. I'm not sure, but I think it's a fair bet that at any one of these meetings they're complaining about something being wrong, probably talking about prices and stagflation. I'm not sure. So the political debate was whether or not we should impose a freeze on food prices. BEN STEIN: Nixon was a great one for doing something, I think in retrospect we now know that it would have been better to do nothing, but he was in favor of doing something.

Wage and price controls, you could see analytically, would get you in a lot of trouble. President, The time has come for a new economic policy for the United States. Its targets are unemployment, inflation. Nixon was reelected in a landslide. The economy did less well. People couldn't cover their costs. Ranchers stopped sending cattle to market; farmers started drowning their chickens. Instead of controlling inflation, they were creating shortages.

And I said to him, "Oh, no, Mr. President, I don't blame George; I blame you!