The Soviets sure did love infrastructure. Worked out well for them.
George Monbiot of Britain’s Guardian newspaper seems to think that Mises is indeed the progenitor of today’s crony capitalism and more.
Indeed he must. As Hunter Lewis the co-founder of Against Crony Capitalism has said, Keynesianism is the mother of crony capitalism as we know it. Keynesian economic theory gives intellectual cover to politicians and social theoreticians who want to spend the money of a society anyway. It is an excuse. It is a cult. It is destructive and it is obviously, especially as we see at this late date, as the world slowly succumbs to its ever growing debt burden,
Animal spirits in the Year of the Monkey?
Most of our readers will probably agree with this statement. Let’s face it, the “jobs number” is arguably the most politically massaged economic number there is. There have long been questions about its validity but now with the rate at an extremely low 4.9% the number just feels absurd.
If you want to know what happened in 2008, I mean really want to know, read this excellent (and short) book.
I haven’t seen the movie yet but I might over the weekend. One of the reasons I haven’t seen it yet is because I have heard that it pounds on the same old (false) reasons for the 2008 Crash, that being that somehow the market “failed.” That “greed” was the culprit, etc. etc. It’s what most people believe.
The rise of both Bernie Sanders and Donald Trump clearly reflects the increasing desperation of large numbers of American voters. They know something is terribly wrong with the economy. They just can’t figure out what it is.
In supporting Sanders they confuse capitalism with the increasingly out-of-control crony capitalism that world governments have foisted on us. In supporting Trump, they seem to hope that the best way to guard the henhouse against the foxes is to put a fox in charge.
The economy is not so much a machine as an ecosystem. Actually a collection of ecosystems driven fundamentally by individual human action. (Even in places like the Soviet Union, where human action naturally undermined the efforts of macro-planners.) We buy into the machine metaphor at our peril.
In his new book, The Forgotten Depression, economic writer James Grant, editor of the prestigious Grant’s Interest Rate Observer, gives us the history of the depression of 1920-21.
It was a very deep depression, as deep as the one that succeeded in 1929. But in this case, the government did not intervene, and it was over in less than two years.
Charles Hugh Smith examines this important but often neglected question. Really, who does benefit from a bust?
It’s going to pop. It’s not just going to inflate forever. When it pops and how it pops are open questions, and I will grant you that saying a Keynesian bubble will pop is kind of like saying sooner or later the sun will set. But it’s pretty amazing how we humans are able to forget or ignore something which we KNOW is going to happen. The sun will set. The easy money bubble(s) will pop, and this time it will be bigger than anything humanity has ever seen.
Tyler Cowen is considered one of the most influential market oriented economists in the world. He heads the increasingly important Mercatus Center at George Mason University just outside of Washington DC and his website A Marginal Revolution is widely read. I once heard him speak at a Students for Liberty conference where he was warmly received by 250 fire breathing young activists. Cowen has serious free market credibility. That’s why it is frustrating to see Dr.Cowen heaping praise on perhaps the most destructive economist to tread terra firma,