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Tag Archives: Murray Rothbard

Philadelphia: Jury Nullification and Natural Rights

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In the film “Philadelphia,” Andrew Beckett was actively recruited by the Wyant and Wheeler law firm, one of the most prestigious law firms in Philadelphia. While employed for Wyant and Wheeler, Mr. Beckett contracts HIV and conceals his illness from his employers. Beckett showed great promise and was highly placed in the firm and was even placed at the head of a landmark copyright case whose outcome would have a major impact on the firm’s reputation. During the preparation for this important case, the formal complaint is lost with only minutes before the statute of limitations expires but is found “misplaced” in central filing. The firm used this as a reason to fire Mr. Beckett for incompetence. However, Mr. Beckett claims that his employer discovered that he had HIV, based on the appearance of Karposi’s Sarcoma lesions on his face. Based on this, Mr. Beckett sues the law firm in federal court for discrimination based on a handicap that did not prevent Mr. Beckett from performing the essential functions of his job with or without reasonable accommodation, which if true, would violate Title 42 U.S.C. § 12112. Mr. Beckett and his lawyer, Mr. Miller, used the Supreme Court case, School Board of Nassau County V. Arline (1987) as precedent that contagious diseases may be considered a handicap; however, employers may consider the contagious effects on others in determining the qualification of a person to perform essential functions by consulting the medical judgments of public health officials. The issue of this case is whether, in fact, Wyant and Wheeler law firm fired Andrew Beckett for incompetence or if they fired him due to their knowledge or belief that he had HIV. If the latter is found to be true, Wyant and Wheeler would need to prove that the judgments of public health officials show that Mr. Beckett is no longer qualified to perform essential functions of his job with or without reasonable accommodations.

There are two ways that I could approach this case. The more conventional approach of determining whether existing statutes and laws were adhered to would lead me to agree with the jury in the film Philadelphia, so long as the events took place after the passage of the American with Disabilities Act (ADA) in 1990. The defendants make no claim that Mr. Beckett was no longer qualified to perform the essential functions of his job at the time he was fired and the evidence suggests that their claims of incompetence are either grossly exaggerated or simply false. The events leading up to the firing shows that the firm had the highest confidence in Mr. Beckett and therefore must have had ulterior motives for his dismissal. The reason I specify the events of the case needed to place after to 1990 is because the ADA was not in existence prior to 1990 and its predecessor the Rehabilitation Act of 1973, used in the School Board of Nassau County V. Arline (1987) case, only applied to programs that received federal assistance and not to private companies. So again, if Mr. Beckett was fired after the passage of ADA and I strictly followed the letter of the law, then I would rule in favor of Mr. Beckett in agreement with the jurors in the film.

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Filed under Law
Nov 5, 2011

Keynesian v Austrian View of the Business Cycle

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Following World War I and during the Great Depression, John Maynard Keynes, often referred to as the “father of Modern Macroeconomics,” put forward a monetarist theory that claimed that government should take action, by controlling interest rates, to stabilize price levels. For example, the government’s central bank should “lower interest rates when prices tend to rise and raise them [interest rates] when prices tend to fall.”1 This is still the practice of the Federal Reserve to this day. As unemployment continued in the west up until World War II, Keynes expanded his theory to include government intervention to stimulate aggregate demand, a combination of “consumption, investment, and government spending,”2 by providing incentives for spending, investing, and higher wages while trying to create disincentives for saving or lowering wage rates. The theory also encouraged deficit spending in times of crisis since it would be the most direct way for government to quickly boost aggregate demand and revive the economy. These ideas were adopted by most Western governments from the 30s until the 60s when stagflation, high inflation and high unemployment, appeared to disprove the core of Keynes interventionary tactics. During this time the Austrian School of Economics, primarily Ludwig von Mises and F. A. Hayek repudiated the theories of Keynes, as well as Chicago School economist Milton Friedman. They ideas of the Austrians to some degree and the Chicago School influence the American government from the 80s all the way until our latest recession when both President George W. Bush, President Barack Obama and the Federal Reserve have re-instituted Keynesian ideas of deficit spending, intentional inflation by lowering interest rates and printing money, and trying to absorb unemployment in the public sector. However, similar to the 70s, we seem to again be facing stagflation as the dollar is continuously weakened and unemployment remains high. This has led to increased support for austerity measures in the United States, a more free market approach.

Macroeconomic theory could be considered a self-fulfilling prophecy. As policy shaped and applied to “aggregates” the repercussions will also be felt by the “aggregate.” However, in reality the aggregate, or any other amorphous entity, does not act, only individuals act. In “America’s Great Depression” by Murray Rothbard he explains that “this view holds that business cycles and depressions stem from disturbances generated in the market by monetary intervention. The monetary theory holds that money and credit-expansion, launched by the banking system, causes booms and busts.”3 Rothbard further explains that is absurd to assume that all entrepreneurs simultaneously make the same decisions leading to booms and busts that extend to all industries and areas of the economy, he says, “in the purely free and unhampered market, there will be no cluster of errors, since trained entrepreneurs will not all make errors at the same time…In considering general movements in business, then, it is immediately evident that such movements must be transmitted through the general medium of exchange—money. Money forges the connecting link between all economic activities. If one price goes up and another down, we may conclude that demand has shifted from one industry to another; but if all prices move up or down together, some change must have occurred in the monetary sphere.”4

Further, Keynes in the introduction to “The General Theory of Employment, Interest, and Money,” makes the strong claim that “classical” or free market economic theory only applies in special cases while his own theory, which he boldly labels “general,” applies generally in all cases.5 However, throughout history the ideas of Keynes and his advocacy for strong government intervention only gain real support during times of crisis. It is during times of recession, depression, or natural disasters, such as the dust bowl that affected the “Okies,” famously portrayed in “The Grapes of Wrath.” The plight of those most affected by such disasters always tug at the heart strings of their fellow countrymen, and rightly so. However, our emotional response and desire to help those in need should not be used to justify a “general” theory. Those who suffered the most in “The Grapes of Wrath” were not suffering due to capitalism or greed, though the case can be made when the circumstances are created in a work of fiction, but were due to an “act of God” that made previous resources and land quickly lose their value and created a shift in labor that was difficult to absorb by the market due to abrupt and unpredictable nature of the disaster.


1. The Concise Encyclopedia of Economics. John Maynard Keynes. http://www.econlib.org/library/Enc/bios/Keynes.html. Accessed on 15 October 2011.
2. Ibid.
3. Rothbard, Murray. (2005). America’s Great Depression Fifth Edition. Auburn, Alabama: Ludwig von Mises Institute. pp. xxxvii
4. Ibid. pp. 6-9
5. Keynes, John M. (1997). The General Theory of Employment, Interest, and Money. Amherst, New York: Promethius Books. pp. 3

Filed under Economics
Oct 15, 2011