Rise and Fall in Dubai: An Austrian Perspective
"Only savings can allow for sustainable economic growth."
"Only savings can allow for sustainable economic growth."
In real life, Keynesianism doesn't work; the government bails out the bankers and then depressions last a long time.
The entire Keynesian edifice rests on a central paradox: impeding the central mechanism of the free market will restore prosperity.
Popular rhetoric notwithstanding, government cannot be run like a business.
Securitization is a financial technique that permits the exchange of relatively nonmarketable credit claims for liquidities.
Nevertheless, if we wish to save the capitalist system (or perhaps, to reinstate it), we must reexamine what made this system so successful in the first place, as well as which forces constitute the greatest threats to its existence.
These changes do not affect at the same time and to the same extent the prices of the various commodities and services. They consequently affect the wealth of the various members of society in different ways.
It makes no sense to say that the major dislocations of the world's economies in the 1930s could have been solved simply by printing up pieces of paper.
Today, the main response to ill-effects of past interventions seems to be to create even greater ones.