Rothbard on Panic Then and Now
Rothbard's detailed review of the many specific actors in the debate of the early 1800s, when the banking system was in its formative stage, suggests that policy discussions back then were more sophisticated than now. FULL ARTICLE by William W. Baker
Comments (2)
Luis Ramirez
"No analogy is perfect, but it is still not comforting that the solutions advanced by antibullionists of that bygone era closely resemble those adopted in the 1930s or today. In the present era, Fannie Mae, Freddie Mac, and the Federal Housing Administration compare with the loan-office solution. Specie suspension resembles the massive plugging of the hole in the banking system's balance sheet with temporary reserves. The use of newly minted, inconvertible currency for priming the pump with "internal improvements" is a Keynesian game plan invented more than one hundred years before its time."
Goes to show two things...first, history ( sometimes very unfortunately) tends to repeat itself and second, Mr. Keynes wasn´t as original a thinker, or as "visionary" as most people think he was. This is why Rothbard´s writings seem always to be so fresh and contemporary.
Published: November 26, 2009 6:08 PM
Terry Crossman
excellent work Bill... a big thanks from an old friend in China.
Published: November 27, 2009 9:50 AM