Economic Literacy

Free Market News Network (FMNN) is built around several concepts including, importantly, economic literacy - which involves a respect for the laws of supply and demand. Interference with these laws distorts the market, reduces opportunities and erodes civil society. FMNN's editorial policy recognizes the primacy of the "Austrian" School and much of its free market thinking.

But FMNN's editorial thrust also focuses on a visible, monetary and power elite which, in manipulating government for profit, causes many modern economic distortions. The monetary elite often does not respect the law of supply and demand, but instead seeks to use government to improve its competitive position. Its intentions are often clothed in "the common good" and positioned as "helping the poor" and especially the "children." These anti-market policies are actively announced via conferences, workshops and white papers. Leadership serving continuously in administrations in both America and Europe reinforces these non-competitive efforts. The positions of its white papers and journals are, in many cases, implemented as policy.

The concept of the visible monetary elite and its program was worked out before the Internet. At the time, there was no harm in revealing oneself, one's plans and actions, because few could understand the totality of what was going on, and those who could were not usually in any position to explain to others. The Internet has changed that.

Free market: A system of voluntary commerce (trading). Government rules and laws, whether "worthy" or not, must be seen within the parameters of economic literacy as a marketplace distortion, creating scarcity, queues, or both.

Free-market economics: Its history is in part the history of what is called Austrian economics. The "Austrian" school is fairly modern - neo-classical as opposed to classical. Many economists who promoted this sort of economics were Austrian - thus the name. Ludwig von Mises was the Austrians' prime 20th century exponent. Perhaps his greatest work, "Human Action," shows clearly that people can - and do - take action to remold economic circumstances and better their lots in life. Such perspectives invalidate the logic of central planning and of the modern sophistries of Western law in general, which tend to assume that trends are static and human behavior inelastic and unadaptive. For this reason, among others, von Mises never received wide circulation in America during the 20th century. It is only thanks to a stubborn few, (notably the Mises Institute) aided now by the Internet, that his thought, and that of the Austrian free-market school itself, is becoming better known.

Free-market thinkers: These individuals seek to implement the above definition as a basis for an improved, freer social order. Free-market thinkers are financially literate and unafraid to face the realities of the world around them. They have been self-actualized by their independent studies of the market and how humans relate to each other within the ambit of private and public commerce. They seek to make the most of their abilities and talents within a realistic framework, rather than a money-power promotional meme.

Free-banking: This is a theory of banking which invokes only market forces, with a conspicuous absence of central banks and any banking regulations, with only the general commercial laws applicable. Free banking includes no restrictions on the formation of banks, the issue of bank notes, the acceptance of demand and term deposits, and the provision of loans, advances and other forms of credit. Banks would also be free to engage in non-banking businesses such as insurance, and non-banks would be free to engage in the business of banking. Banks would set their own credit, capital and reserve policies. This area of study has been developed further by Lawrence H. White (an FMNN commentator), in books such as "Free Banking in Britain: Theory, Experience and Debate 1800- 1845." There is speculation that with electronic currencies free banking can evolve into Anonymous internet banking. (Definition from Wikipedia)

Free banking, a further note: This topic is extraordinarily controversial even among free-market thinkers. However, if owners of private banks explain that they are going to "print" more money than the precious metals they hold in their vaults, and if individuals still choose to utilize their services, then the free market itself should be given a chance to operate. The insistence of certain free-market thinkers that banks cannot or should not lend money much beyond the gold or silver stored in their vaults has likely been used to deride and marginalize the Austrian School of Economics - which is otherwise a magnificent expression of the human spirit.