Monday, October 13, 2003

CapMag's blog Dollars and Crosses reminded me of Amity Schlaes.

I phrased that wrong somehow, but here's what she said on the 30th:

If Iraq is to become another Germany and not a Libya, it needs to write laws and establish institutions that make it an inviting place for capital. That at least is what happened in Germany, where an unknown - the economist Ludwig Erhard - worked with the Allies to create a classically liberal programme after the second world war. Erhard then promoted the plan like crazy over the radio. At times, there were tensions between occupied and occupier; but in the end the result was strong: wage and price controls and high taxes were all swept away. In the long run, Erhard's liberal vision and his laws mattered more than Washington's cash; gross domestic product trebled in a decade.

When she says liberal, she means it in the true sense--having to do with freedom, not the American sense where it is a euphemism for socialist.

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