Just as the interventions of the Hoover administration in the early 1930s led to a massive increase in government under the New Deal and the abandonment of the gold standard, so too have the "stimulus" packages gotten us to the point where raw money printing is a policy option.
Robert Lucas misses two important reasons why government/Keynesian stimulus schemes fail miserably.
Both the Federal Reserve and the European Central Bank are owners of the printing press. They produce base money.
Abuse of paper money helped lead to the expulsion of the Mongol dynasty from China.
Bad ideological trends will result in the complete cessation of any voluntary saving and capital formation on the part of individual citizens.
Featuring Joseph T. Salerno, Jörg Guido Hülsmann, Mark Thornton, Roger W. Garrison, and Douglas E. French. Recorded at Mises University 2011.
