Keynesianism presupposes an economy whose members do not see through the changes brought about by monetary or fiscal manipulation — or, as some might say, the swindle. Above all, it presupposes that people are blinded by the idea that the value of money is stable — by the “money illusion,” as Irving Fisher called it. In all this we are not saying anything new; fundamentally, we are merely stating the approach of the classical economists. FULL ARTICLE
Source link: http://blog.mises.org/10223/the-economics-of-illusion/
The Economics of Illusion
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fee-fi-fo-fum – i smell the blood of a “third-way” man:
“The devaluation doubtless has the advantage, before deflation, that it favors debtors, who are already sorely tried, and prevents the revolution-creating effect of too drastic an “adjustment downwards” — a fact overlooked by certain hyper-classicists during the Great Depression.”
i say bring on the “hyper” crowd. we got the (keynesian) revolution in any case.
The part about the reflation could be have been aired by cnbc.
HOW TO FIX THE UNITED STATES ECONOMY
Ok, I am sick of this. Here’s the Top Ten List for how we fix the United States Economy:
(1) Bring back Industry, Manufacturing, Science & Technology, Agricultural, Oil, Automobile, Coal, Rubber, Steel, and all other facets of a “real economy,” ie, where we create a “real product” that can actually be bought and sold, both domestically and overseas, and then divide each each economic facet/sector into at least one for each state, at a minimum (ie, California and New Jersey should be a Science and Technology State, Ohio and Texas should be Agricultural states, etc.);
(2) For each small business generating $100,000 per year, no taxes at all for 4 years, for each business generating $1,000,000 a year, $10,000 taxes each year for 4 years, for each business generating $10,000,000 a year, $100,000 taxes each year for 4 years, etc., you get the idea – this is so people can be hired at salaries instead of paying taxes – in other words, for a little while, the People should pay taxes, not businesses who are providing jobs for Americans;
(3) Stop trying to mimic London with our Economy by becoming a nation that is only about buying and selling fictional “securities,” “promissory notes,” “lines of credit,” “loans,” or any other such nonsense, because as we just found out, if people decide to default on their payments en masse, then this entire “paper economy” of promises and illusions, rather than solid work product for solid money, goes completely to pot real fast;
(4) Stop selling our Treasury Bonds to foreign nations and foreign buyers like China and Saudi Arabia – our Treasury Bonds should be for Americans and Americans only;
(5) Pump Iraqi oil into the U.S. Economy and also sell it to the world – we fought for it with no one’s help, even if it was a controversial war – why should anyone else have it including the Iraqi people, who can administrate it, but we should abrogate it and pump it like blood back into the cold dead lifeless body that is our Economy;
(6) Balance the budget;
(7) Do what we have to do to equalize our US Dollar to at least equal to the Euro – the psychological effect of the French people having a higher valued currency is devestating to our Nation’s psyche, and makes EVERYONE want to stay in bed – we are Americans and love to compete, be number 1, and fight – it is part of who we are – we need to get that feeling back that we had in the 1980s under Reagan – Born in the USA, people;
(8) Stop or reduce Federal Funding for Separatist or Civil Rights Groups which have now outlived their usefulness, and are now making this country dangerously divisive and a nation of whiners, eg, Feminist groups (we have made progress, now all they do is neuter real men, decimate families, and destroy male and female commitment), Racial groups (stop enabling minority and hyphenated American racial identity groups, and tell them to shut up and become an American), and Sexual groups (gay rights, NAMBLA, etc);
(9) Stop fighting foreign wars that we have no interest in – and stop foreign lobbying groups operating in the US from excessively tampering with this basic and fundamental American tenet;
(10) With regards to already and aforementioned Racism, Sexism, Feminism, or any other type of harmful or divisive “Ism,” if you are an extremist of any type, the United States of America doesn’t need your hateful self – get out – we all need to live and work together for the rest of eternity – if you are a Hater you need to get out of the USA and go somewhere else – hatred and negativity based solely on ideological grounds is like a cancer, and decays the body from the inside out, slowly killing its host over years – if you are a cancer you need to be cut out of the body.
Peace Out.
RDM
I think one of the major problems we have is that people will believe anything.
Here is an example from a Sunday morning show. They we talking about health care. The gist of the argument was as follows:
1) Health care is too expensive, we need to bring down the cost.
2) So we need to a new plan which costs an extra trillion dollars!?
3) We need to tax employers and high earners to pay for this extra trillion dollars!
How, from a Cartesian perspective, or any logical perspective, does this make any sense?
Walt,
It makes perfect sense to someone who wants to get elected. The proof is that if you utter that and run for office, you win.
1) Why?
2) How about, no taxes, period.
3) Stocks and bonds make it easier to allocate capital towards its most productive uses. You can dig ditches and fill them back in, or you can hire a smart CEO that says “don’t do either of those, because that is a waste of capital”.
4) I don’t know, how about eliminate deficit spending completely.
5) What do you mean by “U.S. Economy”?
6) Anybody can “balance the budget” by raising taxes high enough. Or you can simply, I don’t know, REDUCE the budget.
(7) That’s easy. Eliminate the Non-Federal Non-Reserve.
(8) That’s fine.
(9) That’s fine.
(10) Nothing to do with the economy.
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