I Get My Comments Published in the NYT, Expect Hate Mail

The problem with economics and other soft sciences is that a series of unsubstantiated pronouncements constitute an argument. We have no reason to trust any of these explanations, much less the standard liberal bromide that we need to tax money away from savers and give to spendthrifts. All of these theories are propounded by Keynesians who got the Japanese and Europeans into the pickle in the first place. My problem is that we in the USA have exactly the same trajectory and Keynesians in charge as did the Japanese and Europeans. The throwing money at the dartboard to pick a solution has failed and no one has any better ideas.
Economics, as a “science” does not have the power that would justify allowing the Fed and Congress, or any other central power to engineer the economy. Capitalistic societies have booms and busts, deflations and inflations, localized collapses and even disappearances of productive life. Visit any ghost town or recall the 1840, 1870-90, 1930 deflations, the panics, most short lived and self correcting in the history of the USA.
There may not be anything wrong with deflation. Little people who save can gain by putting money under their mattresses and won’t lose it to inflation. Investors will need to be much more careful to be sure that their projects make sense, our government will struggle and be hampered in its attempts to “help” people.
Finally, under socialism, planned economies, welfare states and the like there are no booms, only chronic busts.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s