Interventionism does not work because it misallocates resources in the economy. More importantly, it disturbs, distorts, and destroys the corrective process whereby market actors reallocate resources back into a sustainable framework.
The specific institutional conditions in 1936 Britain caused inflation to work as intended once, and not well. Stimulus policy today completely ignores these origins and has become a universal solvent to heal all economic ills.
Many have long speculated that there is a correlation between economic prosperity and the length of women's hemlines. But perhaps it's now "mom jeans," with their high waists and ample fit, that indicate the true state of the economy.
Two things should concern us. First, the weakness of the recovery in the middle of the largest fiscal and monetary stimulus seen in decades, and second, the short and diminishing effect of these programs.
We've seen pictures of empty shelves in Venezuela. Meantime, the one-year return on the Caracas stock exchange is 1,804.92 percent. If you're already rich in assets, inflation is a big nothing burger. But it's a problem if you're poor.
Two things should concern us. First, the weakness of the recovery in the middle of the largest fiscal and monetary stimulus seen in decades, and second, the short and diminishing effect of these programs.
Many have long speculated that there is a correlation between economic prosperity and the length of women's hemlines. But perhaps it's now "mom jeans," with their high waists and ample fit, that indicate the true state of the economy.
Today’s calls for a plethora of new government stimulus polices to usher in a "recovery" will only cripple efforts by investors and entrepreneurs to get the global economy back on track.
Quantitative methods are indeed useful and enlightening in the fields of economic history and descriptive economics. For Mises, however, these fields do not fall within the field of economics, narrowly understood.
We've seen pictures of empty shelves in Venezuela. Meantime, the one-year return on the Caracas stock exchange is 1,804.92 percent. If you're already rich in assets, inflation is a big nothing burger. But it's a problem if you're poor.
