The standard Keynesian line is that the government can shorten recessions by using fiscal and monetary “stimulus.” However, as Austrian economists note, ratcheting up government spending only makes things worse, setting the stage for the next economic downturn.
While the US dollar still is the world‘s “reserve” currency, its abuse by the Federal Reserve and federal government has weakened it precipitously. While President-elect Trump recognizes the threats to the dollar, is he willing to do what needs to be done to change the situation?
The Mises Institute is giving away copies of Murray Rothbard's classic, What Has Government Done to Our Money? and it will change how one sees our nation's monetary history. Rothbard presents a clear case for sound money as a basis for civilization itself.
A central doctrine of the Keynesian system is the “liquidity trap” in which consumers hold money in anticipation of higher interest rates. The act of holding money allegedly promotes “underconsumption,” continuing the economic downturn. This doctrine, however, cannot withstand scrutiny.
Thorsten Polleit (TP): On November 5, 2024, Donald J. Trump was elected the new US president with a landslide victory.
Mainstream economists are united against deflation, which they claim is the cause of recessions. Austrians know better, as they understand that deflation raises living standards and prevents destructive asset bubbles.
Government paper fiat money does more than just cause economic havoc. It also is an exercise in profound dishonesty and theft.
On New Year’s Eve 1974, President Gerald Ford snuck in an executive order legalizing private gold ownership, revoking FDR’s previous policies banning gold “hoarding.”
No macroeconomics or monetary theory course is complete without introduction of the Equation of Exchange, or MV = PQ. However, this equation explains nothing, praxeologically speaking. Instead, it clouds our understanding of how money fits into our economy.
We have reached this point: the government keepers of money do not even understand what money is or why inflation is harmful. To them, the real threat to the economy is “deflation.”
