The recession of 1937 provides a perfect case study to offer a vision of the future based on our current fiscal and monetary policies. It turns out that high government spending and intervention, mated with an inflationary monetary policy, caused the severe downturn of 1937. We are headed down that same road.
Posts Tagged ‘Federal’
Healthy Recovery
Important economists are misinterpreting several statistics and falsely pointing towards impending recoveries. The truth is actually quite different. There is higher probability a future double-dip, or a secondary economic collapse.
Central Banking and War
The Central Bank has been at the center of the State’s ability to finance wars on a large scale. As a result, it can be said that without central banking the large wars of the 20th Century would have never taken place, as they would have been impossible to fund.
Hoover’s response to the October 1929 crash
After one has an understanding of the true scale of Hoover’s fiscal spending figures one can deduct that if government spending did not work during the first three years of the 1930s, there is no reason that it should have worked during the next four, either.
Assessing Alan Greenspan’s Role in the Current Economic Crisis
Economists David Henderson and Jeffrey Hummel suggest that then-Chairman of the Federal Reserve Alan Greenspan’s monetary policy did not have a large impact on the interest rates. Their analysis couldn’t be further from the truth.
Introduction to the Austrian Business Cycle Theory: Explaining the Boom & Bust
The business cycle has been attributed to many factors by many different economists, but other than the Austrian Business Cycle Theory, none have been able to pinpoint the exact causations for an economic recession (or depression). The only theory which has consistently been able to cause the business cycle is the Austrian theory; a theory which presents the problem as a problem of fractional-reserve banking.
Roots of Inflation
On 21 July 2009, Chairman of the Federal Reserve Ben Bernanke defended himself from Ron Paul’s accusations of promoting inflation by defining inflation as an increase in the consumer price index. hrough this definition, Bernanke purported to refute Ron Paul’s own definition—Austrian definition—that inflation referred to an increase in the money supply. Ron Paul’s definition of inflation is, in fact, the most accurate definition of the word.
Gold and Economic Freedom
An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense—perhaps more clearly and subtly than many consistent defenders of laissez-faire—that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.
There is no hope…
Paul Krugman shows his colors, and many of his readers don’t have any clue on economic theory or logic.