Bringing up the name of famous economists in order to try and give credibility to otherwise often fairly dubious ideas and theories is pretty common, and in terms of marketing it certainly works. Yet more often than not it seems that these ideas in fact run very much against what the economists that are used to supposedly enhance their credibility actually wrote and thought. Adam Smith’s “Invisible Hand” is probably the most wide-spread, misunderstood and misquoted one of them. From Marx to Keynes to Friedman, every famous economist has fallen victim to these wrongful association in the past, and I find the economics profession has been doing a fairly bad job at setting the record straight or even trying to do so.
The latest occasion that also leads me to write this post is the Free Market Road Show that is currently touring all of Europe and beyond. Some of the planned speakers are actually very interesting and knowleadgeable – Madrid’s event last week, for instance, featured Mark Klugmann who presented some ideas on “charter cities” (he is currently advising Honduras’ government on how to turn these into a reality), a topic that has fascinated me for a long time (and for which I started writing a blog post over a year ago, yet never finished). Another speaker at the event was Barbara Kolm, president of the Friedrich A. v. Hayek Institute – which is also what brings me back to my original topic.