Other Schools of Thought

Falling prices, far from being deflation, are actually the antidote to deflation.

Paul Samuelson is the one who laid the theoretical foundation for this systemic anarchy. Milton Friedman then provided the emperor's new clothes, dressing it in the garb of neoliberalism. That is how these two leading figures in American economic thought were united in unleashing on the world community the system that has now collapsed.

"Liquidity was the cause of the crisis, and now excess liquidity is presented as its solution!"

Instead of facing the truth and permitting not only the malinvestments to fail, but a real recovery to take shape, Obama, Krugman, and their allies are insisting that all this "perpetual motion machine" known as an economy needs is a little more spending to lubricate the gears and send it on its merry way.

A full-blown bailout of the banks responsible for making bad loans will only further an economic system of private profits and socialized losses.

The oft-used cliché in response to harsh criticisms of the country or its government is "If you don't like it, you can leave." Republicans made it much more difficult for disgruntled citizens to follow this advice; it is time to repeal this profligate legislation.

Contrary to Greenspan, we can conclude that it is not long-term rates as such that fueled the bubble but the loose monetary policy of the Fed.

Given how many Keynesian economists predicted a return to depression conditions when World War II spending came to an end, and that what we instead got was the single most robust year the private economy has ever seen, isn't it a little strange that not one of these economists went back and reexamined his premises?

The Austrian arguments, to repeat, are deductive. They are not statistical.

Time after weary time, it is the mainstream and Keynesian economists (who ridicule and ignore Austrian economics as unscientific) whose predictions are utterly refuted by the events of history.