Even if the COVOID-19 virus turns out to be more severe than the skeptics give us reason to think it is, we can get through it. We cannot survive the end of the division of labor. It would be the finish of civilization as we know it.
Central bankers are panicking, and their solutions range from "buy everything that moves" to pushing interest rates even further into negative territory. Yet this doesn't seem to be helping much.
The costs of this government-forced economic collapse—in terms of lost lives and ruined health—are likely to be devastating.
There is a reason to panic. But the panic should be over how governments—who know so very little about the virus that they have decided warrants destroying the global economy—will create many new threats to health and well-being through their policies.
Every crisis caused by the unbacked paper money system expands the power of the states over economic and social life, and unfortunately, once the state has expanded its power, it is unlikely the trend will be reversed.
At this point, monetary policy can't save Italy. Promises from Europe's central bank have allowed Italian policymakers to avoid coming to terms with Italy's bankrupt reality. Until now.
Philipp Bagus reports from Spain: when people are frightened enough, they'll let the state do pretty much anything.
What needs to be done in such a crisis is not to attempt to steer the market to ensure it provides what is needed, but to let it free to do what it always does: match the goals of entrepreneurial producers with the needs of the populace.
The latest health crisis has made it clear that governments put their own interests before those of the public while hiding crucial information and imposing counterproductive regulations.
You are not even allowed to ask: "Is the price we’re paying worth it?" or "Is this an abundance of caution, or an overdose?" The "serious people" attack anyone who urges calm and encourages others to adopt a "don’t panic" approach. The new party line is: panic = virtue.
