Other Schools of Thought

We should not be fooled into believing that the economy will crumble without high government spending and loose credit organization.

Briefly, the importance of the Hayek theory of the business cycle is that it puts the blame for the boom-bust cycle squarely on the shoulders of the government and its controlled banking system, and, for the first time since the classical economists of the 19th century, completely absolves the free-enterprise economy from the blame.

Maybe letting the market fix what government broke isn't an option they can bring themselves to embrace, even if it's the only way out.

All that stands between the present awful reality and 0% unemployment is a class of social managers unwilling to admit error.

In the course of lengthy arguing against hidden usury in various forms of contracts, the brilliant mind of San Bernardino stumbles, for one of the first times in history, upon what later would be called 'time-preference'.

From the market point of view the Fed is a bankrupt institution.

Whether you are trying to understand the problem of growing governmental power yourself or are trying to communicate it to others, On Power can be heartily recommended as a stimulating and profound tract.

"Keynesians believe that long-run profit expectations, which have no basis in reality in any case, are subject to unexpected change. Economic prosperity is based on baseless optimism, economic depression on baseless pessimism."

I am making the simple observation that even if the US government "did nothing" according to the man on the street, it still would have been interfering very heavily in the situation in Haiti. The Haitians have been "enjoying" the help of the US military for years, which is partly why they were so ill equipped to deal with a powerful earthquake.

What Hazlitt is saying is this: "If we want to keep our free political system, here are the economic principles to which we must return."