Moral hazard is in no way a particular problem of the insurance industry. It can arise in almost any other field of human activity where there is a separation of ownership and control.The important fact is that any form of government interventionism, by its very nature, entails a forced separation of ownership and effective control.
It is paramount for a free society to ensure, in the marketplace of ideas, that only good ones, based on sound theory and history, take root.
But the Keynesian conclusion is rather obvious: the state, through its compulsory means, has to boost the level of aggregate demand in some way to stop the economy from falling into recession.
While his claim of ideological steadfastness on his “basic political views” may have been correct, Rothbard did change his mind on ques
Communism is extreme socialism; socialism is extreme statism.
To recap, what then we find is that not only does the availability of financial capital become wholly divorced from the extent of the pool of physical capital goods; not only does much of that pool become misused (and, hence, ultimately, stripped of its original "capitalness"); but that the wellspring of capital maintenance and augmentation — namely, voluntary saving — is concreted over to provide a gaudy, Baroque fountain of greater exhaustive consumption.
The switch from anti-Communist militarism to anti-Islamic imperialism was not difficult. They took a chapter out of Orwell, and merely changed the name of the enemy.
In the real world, an artificial boost in demand that is not supported by production leads to the dilution of the pool of real savings and, contrary to the Keynesian view, to a shrinking in the flow of real wealth. The result is economic impoverishment.
Although Liberal Fascism contains much important information, its many mistakes require that it be used with extreme caution.
Large profit as such becomes therefore a symbol of social injury, merely because it is large. … Of all the counter symbols this was the one most damaging to the capitalistic system.
