thoroughly exposes the underlying weaknesses and fallacies of the whole Keynesian policy-activism agenda driven by the “animal spirits,” the irresistible urge to to — Fed and fiscal mis-direction of production, regulatory burdens, and misguided policies that distort incentives. In the winter 2014–2105 issue of Regulation , the foreseeable future. As I concluded in 2009, while the impact to prosperity and innovation is significant, “the cost in lost freedom may be immeasurable.” Image
up and prevents necessary adjustments. Second, the Fed can adopt an easy money policy of inflation. This keeps prices up and interest rates down, whereas economic means that real wage rates rise. The result is massive unemployment. Fourth, policies to keep prices up also raise the cost of living and can result in surpluses labor to produce consumer goods or hire the abundant skilled workers to produce innovative consumer goods to sell for profits. Mainstream, especially Keynesian,
this is just a Band-Aid that won’t fix an unintended consequence of another bad policy: flawed monetary policy. That audit firms like Arthur Anderson regularly went along with aggressive or real prospects. Speculators pursued Internet start-ups as well as the seemingly innovative but highly leveraged Enron. Since the collapse of the Greenspan bubble,
Introduction The most basic rule of economic policy is to allow prices to adjust to market conditions. This maintains Say’s Law on the economy. This paper examines two historical episodes where interventionist policies turned business cycle corrections into depressions. The first episode of 1929–1930 into the Great Depression. Furthermore, Hoover was actually an innovator and advocate of New Deal–like policies. For a contemporaneous account of
that the Hoover-Roosevelt period was really a continuum, that most of the “innovations“ of the New Deal were in fact expansions or intensifications of Hoover And, in Rothbard’s argument, the net effect of the Hoover-Roosevelt continuum of policy was to make the slump more severe and to prolong it virtually to the end of
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The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.