Austrian Economics vs. Bernanke’s Economics

Economists of the Austrian School of economics define inflation differently than much of the mainstream of the economics profession. The typical mainstream intermediate macroeconomics textbook defines inflation as “an increase in the overall level of prices.” Ludwig von Mises, suggested otherwise. A recent exchange between Congressman Ron Paul and Ben Bernanke took place during Bernanke’s testimony before the Congressional Joint Economic Committee on November 8, 2007. Congressman Paul, instead of referring to either the PPI or CPI, referred to the MZM money aggregate. He likened the Fed to a price fixer.

Abandoned Capital Projects

From the NPR web site:
    A vacant home in a decent neighborhood used to be a rarity. But in cities around the country, homeowners and investors — unable to afford the homes they bought — are abandoning their properties, marring the neighborhoods they leave behind.
. The Austrian theory of the business cycle explains how the issuance of credit beyond voluntary savings leads to an unsustainable mix of investment decisions among the various types of capital goods.

Freedoms and Foes

H.R. 1955 is an absolute attack on the freedom of speech. Not only does it assault my right to question government, it also assaults the right of ardent Marxists to speak their minds. So, I am at a loss at both ends. You see, I value the ability to speak as much as the ability to read nonsense from those such as the writers and curators over at Marxists.org. Should H.R.

The Dollar Crisis

No matter how many warnings have been issued, an economic crisis always takes a country by surprise. The most urgent task is to somehow prevent policymakers from doing evil things to “correct” the crisis. Every form of intervention can only make matters worse. The best policy is to adopt a laissez-faire policy through regulatory cuts, sound money, and eliminating legal restrictions on trade. The liquidation must be allowed to happen on its own to provide a suitable foundation for a future recovery.

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