You mean like the America that created the Great Depression?
Discussion
Yes, free market capitalism created the great depression... š¤£
It literally did. Laissez faire government, stock market speculation, unregulated financial industry and income inequality and over-production all contributed to the collapse of the economy. Thatās why programs like these exist, and itās why we havenāt seen anything nearly as severe ever since.
Figured you would cite Rothbard! Iāll have a look at this. As a guy who majored in this stuff, though, what Iāll say is that there is little evidence that the principles of Austrian economics can work (at least better than the status quo) in a large, late-stage capitalist society like the US, but it is fun to think about how it might look.
Ha don't cite a major. That does the opposite of what you think.
"I've been professionally brainwashed by Keynesian propagandists, trust me"
Never said you should trust me, just saying Iām not surprised you cited a controversial fringe economist with little empirical data to support his theories š
Likewise, I am not surprised you cited a degree. Have a good one, man!
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Btw Iām not dismissing your argument at all. After all, I, too am a bitcoiner, so at the very least I take interest in commodity-backed currency. Itās just hard for me to accept Austrian economics and anarcho-capitalism at face value without a healthy dose of skepticism, since we havenāt really seen those things work in modern history. Still, Iāll read the paper you shared
š¤ same goal, different understandings.
Correct. When there is too much malinvestment you need recessions or even depressions to clear out shit businesses. The alternative is bailouts, central planning and inflation. Pick your poison
Alright but likeā¦ on one side, poverty and death, and on the other, inflation and bureaucracy. I know what Iām choosing.
Inflation and bureaucracy cause poverty and death. Literally look around.
Inflation pushes the most vulnerable further into poverty. Social welfare might keep some alive, but itās akin to starving a patient but keeping them on life support.
Nah, inflation does erode un-invested wealth over the years, but it doesnāt evaporate the $30 in a poor personās pocket faster than they can spend it. Poor people donāt earn enough to accumulate any wealth therefore inflation doesnāt make them poor. The issue is that too many jobs donāt pay living wages or provide adequate benefits.
Yes, inflation does increase the cost of living over time so in that way itās part of the problem. But imo the real problem is a distorted labor market.
Examine that first statement again with anyone living in a high to hyper-inflating economy.
The second statement makes no sense to me. If you have no wealth, inflation hits you the hardest. This is undeniable. Rising costs of goods and services means you have less.
A surefire way to distort labor markets is fiat currency and expanding government interventionism.