Leaving the gold standard in 1971 meant the U.S. was free to manage its money supply to prevent deflation and “truly damaging levels of inflation.” But mainstream economists, led by the free-market Chicago School, have ignored this fact, leaving the public’s fate to the caprices of markets for decades.
Groundbreaking research in behavioral economics may pose the greatest academic threat ever to free-market theory, suggesting that emotions linked to brain chemistry—not rational self-interest—play a deciding role in how we spend, save and invest.
It’s a theory that seeks the removal of government oversight from any and all economic and social activity, which has been steadily adopted by legislators and policymakers on the right, and some on the left, for the past three decades, and tea partiers may actually be opposed to it. (more)
In a time of critical problems such as climate change and high unemployment, Barack Obama’s regulatory czar is busy trying to secure the president’s re-election by indulging the anti-regulatory appetites of gluttonous corporations, according to a report by Dan Froomkin.