William Nordhaus coined the term “political business cycle” a half-century ago. The idea was that government authorities, particularly the central bank, would manipulate the economy to correspond with election cycles, a practice that continues to this day.
The ruling classes and their media blamed the 2008 financial crisis on free markets and too little government regulation. However, because the Federal Reserve promised to help cover losses in financial markets, it practically invited reckless behavior.
Is the US headed for hyperinflation? Mark Thornton dives into the national debt crisis, historical collapses, and the three stages of financial doom.
The principle of Occam‘s Razor states that we should avoid superfluous activity. When it comes to our monetary system, however, the Federal Reserve System doesn't simplify things, but instead complicates the economy. That alone is reason for it to be abolished.
While President Trump‘s tariffs certainly are causing economic harm, they alone could not cause a recession had there not already been years of artificial credit expansion.
American history classes typically teach that the original transcontinental railroad was a major triumph. What they don‘t say is that it was a product of corporate welfare that created economic problems later on.
The most enduring economic myth of the twentieth century is the idea that FDR‘s New Deal pulled America out of the Great Depression. In truth, his policies destroyed the hopes of millions.
Americans like to believe that the US is a wealthy, indestructible country, but as government debt piles up and inflation ravages the economy, perhaps they need to start worrying. Our present path is unsustainable.
Is “austerity” in the future for the US Government? Awash in debt and facing economic crises, the government may have to go on a diet, something neither Congress nor the president want to do.
Some economists fear that excessive government debt will lead to an economic crisis and recession. However, the real threat to the economy is Federal Reserve-supported fractional reserve lending that helps to set off an unsustainable boom.
