Keynesian economics is not perfect but Austrian economics is worse at predicting how things are
The two biggest flaws of both of them is they don’t adequately understand the key problem is who controls the money supply…and how they tax it with interest that is not fed into the economy (money is created via credit, but the interest to repay that credit is not created along with it. That makes us interest slaves).
But aside from this, Keynesian is the way to go in times like 2008…true deflation. The problem became that Keynesian methods were abused. First they became a mostly full time thing instead of truly being applied counter-cyclically. But worse…not every recession is deflationary so Keynesian pump priming isn’t needed to combat every one. Austrian gets it right because sometimes we do need to experience the pain.
Austrian gets it wrong with its ridiculous ideas of anti-fiat currency (gold standard solves nothing), inflation is always bad and government is the main problem (among others).
If i borrow 1000 and only need to pay back 900 thats a 10% gain. Could be beneficial to paying down debt (provided theres a market for the bonds). Isnt to some degree in the interest of the government to have low interest rates on bonds?
" On Monday morning, President Trump told reporters in Biarritz, France, that “China called last night” and said they want to resume trade talks, later elaborating that two “high-level” Chinese officials had called to try and restart stalled negotiations. He turned to Treasury Secretary Steven Mnuchin for backup, and Mnuchin said there had been “communication,” later amending it to “communications.”
Well, “aides privately conceded the phone calls Trump described didn’t happen the way he said they did,” CNN reported Wednesday. “Instead, two officials said Trump was eager to project optimism that might boost markets, and conflated comments from China’s vice premier with direct communication from the Chinese.”
Trump is agitated, CNN reports, because “the economy is flashing warning signs Trump didn’t expect, his trade war with China is dragging on months longer than expected yet he refuses to give in,” and he’s “spinning to find victories to sell to voters.” The voters may be fooled — China apparently isn’t. Peter Weber"
Yep… in retrospect, it was probably one of the best things to do in a crappy situation .
The big crime of the 2008 collapse was that after all of the financial fallout was dealt with, there was no political will to punish the people who did this or make meaningful changes in the system to make sure it doesn’t happen again.
There are more than a few Republicans I would get behind. The current leader of the conservative movement and Republican party is simply not one of them.
So you’re thinking the recession hits “at the right time” for Democrats to take advantage?
I’ll tell you this…if it is “the mother of all recessions”, given the political climate we currently have, if the Democrats win as you say? I’m not hopeful of a peaceful transition.
As a long time businessman, there is no room for emotions or pining for the America of the 1950’s.
Things chance short term, they change long term. Lots of black smiths, silver smiths and gold smiths lost their businesses during the industrial revolution. Lots of farmers have lost their farms to bankruptcy and consolidation and the trend will only be farther away from private farms and closer to corporate farms as time marches on. The farmer of today, like the black smith of old, is an anachronism. Corporations can more efficiently plan and farm than can individual small farmers. Sooner or later, most farmers are either going to be in another line of work or merely employees or managers of agri-business.
Things change. The traditional farmer, like the traditional artisan, is being swept into the dustbin of history.
I’m guessing you don’t have much familiarity with the auto industry. While I can sympathize with your position on “too big to fail” I don’t think you understand true ramifications of GM folding. Most Tier 1 and Tier 2 suppliers would have had massive layoffs with some going out of business.
I have no doubt that had GM been allowed to fold that we would have been in a depression.
