Betsy Ross
Well-known member
Here is President Milei's full speech at Stanford today.
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President Javier Milei's speech at Stanford University - May 29, 2024
- Thread starter Betsy Ross
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Vince
Well-known member
It was a long speech. This guy on X put the Cliffnotes to the Speech.
A short summary of today's speech.
Very technical economics heavy speech covering econ history, growth, general vs. partial equilibrium; dangers of models. Overall, critical of how economics has used market failure to justify state intervention.
2: Began with a discussion of intervention of the state and socialism. Much discussion of Hayek, Friedman and general equilibrium. Principle of noninterference good. Argues state intervention during COVID-19 pandemic caused 100k additional deaths in Argentina
3: Discussion of economic models and why we need models because the world is complex but that when they stray from reality they can become used to strengthen the state and socialism
4: Discussion of why socialism has been so successful in the 21st century in Argentina (under Kirchner), Uruguay, Chile, Paraguay, Brazil, Colombia; said Spanish President Pedro Sanchez is "like a Kirchner sister" because "he doesn’t have any manners"
5: Discussion of "What are markets?" “We are the market”; references to wanting to see the Lakers and Celtics play. Said he once enjoyed watching Magic Johnson play; likes the Lakers colors (yellow and purple) because they are also the colors of his party and advance Liberty
6: Spoke about why he came to study economic growth after teaching micro and mathematical econ; Angus Maddison, and when economic growth began (pre and post Malthusian dynamics). Going from 90% living under extreme poverty in 1800 to 10% living under extreme poverty in 2000
7: Discusses Wald, Brouwer, and Kakutani fixed point thms and brilliance of general equilibrium. Says a bad economist is one who focuses on partial equilibrium during one period versus a good economist is one who focuses on general equilibrium. How many models have failed us.
8: Discussion of how Ronald Coase had an example of private light houses where trading off property rights better than starting with wrong model and then justifying intervention through market failure. Example how Argentinian Ministry of Water was created just to build a bridge.
9: @JMilei introduced Minister of Economy in audience (@LuisCaputoAR), who is “leading the chainsaw operation”, Milei said what they are doing is important not just in Argentina but to the history of the world in that the world is “waking up to the ideas of freedom”
10: Referenced Ramsey and the importance of pursuing 2nd best solutions in the context of regulation. Noted the absence of innovation in cases of extreme regulation.
11: Discussed Adam Smith's economic model being better conception of economic growth than modern ideas of monopolistic competition including ideas of Joan Robinson. Gave examples where technology improved human condition even after 10 competitors failed leaving one monopoly
12: Discussed how economics went wrong after the static consumption functions of Keynes and Marshall; why intertemporal substitution matters and why the Wicksellian model which preceded Keynes was better. Recommended Murray Rothbard's "Man, Economy, and State"
A short summary of today's speech.
Very technical economics heavy speech covering econ history, growth, general vs. partial equilibrium; dangers of models. Overall, critical of how economics has used market failure to justify state intervention.
2: Began with a discussion of intervention of the state and socialism. Much discussion of Hayek, Friedman and general equilibrium. Principle of noninterference good. Argues state intervention during COVID-19 pandemic caused 100k additional deaths in Argentina
3: Discussion of economic models and why we need models because the world is complex but that when they stray from reality they can become used to strengthen the state and socialism
4: Discussion of why socialism has been so successful in the 21st century in Argentina (under Kirchner), Uruguay, Chile, Paraguay, Brazil, Colombia; said Spanish President Pedro Sanchez is "like a Kirchner sister" because "he doesn’t have any manners"
5: Discussion of "What are markets?" “We are the market”; references to wanting to see the Lakers and Celtics play. Said he once enjoyed watching Magic Johnson play; likes the Lakers colors (yellow and purple) because they are also the colors of his party and advance Liberty
6: Spoke about why he came to study economic growth after teaching micro and mathematical econ; Angus Maddison, and when economic growth began (pre and post Malthusian dynamics). Going from 90% living under extreme poverty in 1800 to 10% living under extreme poverty in 2000
7: Discusses Wald, Brouwer, and Kakutani fixed point thms and brilliance of general equilibrium. Says a bad economist is one who focuses on partial equilibrium during one period versus a good economist is one who focuses on general equilibrium. How many models have failed us.
8: Discussion of how Ronald Coase had an example of private light houses where trading off property rights better than starting with wrong model and then justifying intervention through market failure. Example how Argentinian Ministry of Water was created just to build a bridge.
9: @JMilei introduced Minister of Economy in audience (@LuisCaputoAR), who is “leading the chainsaw operation”, Milei said what they are doing is important not just in Argentina but to the history of the world in that the world is “waking up to the ideas of freedom”
10: Referenced Ramsey and the importance of pursuing 2nd best solutions in the context of regulation. Noted the absence of innovation in cases of extreme regulation.
11: Discussed Adam Smith's economic model being better conception of economic growth than modern ideas of monopolistic competition including ideas of Joan Robinson. Gave examples where technology improved human condition even after 10 competitors failed leaving one monopoly
12: Discussed how economics went wrong after the static consumption functions of Keynes and Marshall; why intertemporal substitution matters and why the Wicksellian model which preceded Keynes was better. Recommended Murray Rothbard's "Man, Economy, and State"
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