Rothbard on Mises: Depression Not Inevitable, Result of Central Banks

Discussion in 'Political Opinions & Beliefs' started by jemcgarvey, Mar 22, 2012.

  1. jemcgarvey

    jemcgarvey New Member

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    "It has today been completely forgotten, even among economists, that the Misesian explanation and analysis of the depression gained great headway precisely during the Great Depression of the 1930s?the very depression that is always held up to advocates of the free market economy as the greatest single and catastrophic failure of laissez-faire capitalism. It was no such thing. 1929 was made inevitable by the vast bank credit expansion throughout the Western world during the 1920s: A policy deliberately adopted by the Western governments, and most importantly by the Federal Reserve System in the United States. It was made possible by the failure of the Western world to return to a genuine gold standard after World War I, and thus allowing more room for inflationary policies by government. Everyone now thinks of President Coolidge as a believer in laissez-faire and an unhampered market economy; he was not, and tragically, nowhere less so than in the field of money and credit. Unfortunately, the sins and errors of the Coolidge intervention were laid to the door of a non-existent free market economy...

    Ludwig von Mises had predicted the depression during the heyday of the great boom of the 1920s--a time, just like today, when economists and politicians, armed with a "new economics" of perpetual inflation, and with new "tools" provided by the Federal Reserve System, proclaimed a perpetual "New Era" of permanent prosperity guaranteed by our wise economic doctors in Washington. Ludwig von Mises, alone armed with a correct theory of the business cycle, was one of the very few economists to predict the Great Depression, and hence the economic world was forced to listen to him with respect...

    What swamped the growing acceptance of Misesian cycle theory was simply the "Keynesian Revolution"---the amazing sweep that Keynesian theory made of the economic world shortly after the publication of the General Theory in 1936. It is not that Misesian theory was refuted successfully; it was just forgotten in the rush to climb on the suddenly fashionable Keynesian bandwagon. Some of the leading adherents of the Mises theory---who clearly knew better---succumbed to the newly established winds of doctrine, and won leading American university posts as a consequence."

    - Economic Depressions: Their Cause and Cure, 1969
     
  2. akphidelt2007

    akphidelt2007 New Member Past Donor

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    Oh geez, the crazy Austrian's are at it again... Sorry but turning our country back in to the 1700s is not going to happen!

    [​IMG]
     
  3. junius. fils

    junius. fils New Member

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    Eichengreen, Barry. Golden Fetters, The Gold Standard and the Great Depression, 1919-1939. New York: Oxford University Press, 1992. (P)

    Ahmed, Liaquat. Lords of Finance, The Bankers Who Broke The World.New York: Penguin Books, 2009. (P)

    Friedman, Milton. And Anna Jacobson Schwartz. A Monetary History of the United States, 1867-1960. Princeton, NJ” Princeton University Press, 1963. (P)
     
  4. squidward

    squidward Well-Known Member

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    You prefer turning it back to the dark ages, relinquishing the fruits of your labor to your overlords.
     
  5. akphidelt2007

    akphidelt2007 New Member Past Donor

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    Lol!!! Welcome to a civilized society where people contribute for the benefit of the society, not just for themselves.

    Libertarian's are selfish and a bunch of freeloaders!
     
  6. Dr. Righteous

    Dr. Righteous Well-Known Member

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    You're still pushing lies. Austrians want to move forward to a free banking system, which was never done in this country.
     
  7. Dr. Righteous

    Dr. Righteous Well-Known Member

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    Collectivist nonsense. "Society" is not real, it's just an abstract concept that is used by Collectivists as an excuse for the destruction of freedom.

    I've already proven to you why your economic beliefs about inflation being good for "society" are totally false. And yet you're so close minded that you let it go in one ear and out the other.
     
  8. akphidelt2007

    akphidelt2007 New Member Past Donor

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    Lol, what is a "free banking system"?
     
  9. akphidelt2007

    akphidelt2007 New Member Past Donor

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    Awww... more nonsense philosophy!!

    And quit lying you have never proven to me inflation isn't good for society!!

    I see you are back to your lying ways!!

    Embarrassing bro
     
  10. junius. fils

    junius. fils New Member

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    Make your own joke about that one.
     
  11. fiddlerdave

    fiddlerdave Well-Known Member Past Donor

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    Neighborhood fire protection stations are hardly an "abstraction".

    I have lived without it and with it. Living with it is better.
     
  12. pakuaman

    pakuaman Active Member

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    Yeah inflation is great let's go ahead and wipe out the value of the currency to where it's worthless and destroy our savings.
     
  13. Dr. Righteous

    Dr. Righteous Well-Known Member

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    What does that have to do with Collectivism?
     
  14. Dr. Righteous

    Dr. Righteous Well-Known Member

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    A system where no legal tender laws exist and banks are allowed to issue competing currencies.
     
  15. Dr. Righteous

    Dr. Righteous Well-Known Member

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    You obviously don't remember much of the Creation of the Fed thread, do you?

    Inflation destroys savings and raises the cost of living for people on fixed incomes. This particuarly harms the poor the most.
     
  16. akphidelt2007

    akphidelt2007 New Member Past Donor

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    LOL!! We used to allow banks to issue their own currencies and it was a complete mess. It was such a mess that it was one of the reasons we started gravitating towards a single currency.

    I don't think you understand how complex and sophisticated our economy really is. You just think everything will be fine by letting anyone do whatever they want.

    Amazing!!
     
  17. akphidelt2007

    akphidelt2007 New Member Past Donor

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    Oh I remember it but you didn't prove anything to me other than you have some weird creepy fascination with gold and an unhealthy distrust for the Fed and the Govt.

    Other than that, your theories are incredibly ignorant.
     
  18. Dr. Righteous

    Dr. Righteous Well-Known Member

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    That never happened. You're just making stuff up.

    Sure I do. You're just falling back on this tired old point of yours to make it look like you understand more than you really do.

    Even THAT solution of total economic freedom would be far preferrable to the state being used as a tool by the elite to rob the middle and poor classes at gunpoint.
     
  19. Dr. Righteous

    Dr. Righteous Well-Known Member

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    It's a fact that price inflation destroys savings and harms those on fixed incomes. Nothing you say can disprove that.

    Nice ad hominem.

    Of course. Simply knowing that the majority of the Fed's structure was designed by 1/4 of the world's wealth is cause enough for it to be distrusted.

    Distrusting the government is never unhealthy. People should always distrust their government. That's the principle on which this country was founded.

    Baseless claim.
     
  20. dujac

    dujac Well-Known Member

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    that's called chaos, a quick look at history makes it clear that it doesn't work

    going backwards isn't the answer



    you're completely wrong
     
  21. Dr. Righteous

    Dr. Righteous Well-Known Member

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    What look at history are you referring to?

    You're saying that competition is chaos. That is an economically unfounded claim.
     
  22. akphidelt2007

    akphidelt2007 New Member Past Donor

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    OMG!! I said the entire time that the only people hurt by inflation are those who save their money in a mattress and those on fixed incomes. What about all the people inflation helps? Like 90% of the rest of the country?

    LOL!!

    I love how you just pick and choose data about flaws in our system yet you never give alternatives and you never give an explanation of why the alternative would work. You simply just want us to believe your opinion, lol.

    Nice try
     
  23. dujac

    dujac Well-Known Member

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    really, you just don't know what you're talking about


    At one time, the nation had more than 30,000 types of currency, which almost any organization, even drugstores, could issue. The confusion was compounded because people could redeem some currencies for gold and silver, while government bonds backed other types of currency.

    http://www.federalreserveeducation.org/resources/fedtoday/fedtodayBrochure.pdf

    [ame="http://www.youtube.com/watch?v=jFnH9MCdpLo"]http://www.youtube.com/watch?v=jFnH9MCdpLo[/ame]

    at the 1:38 mark: "At one time, the nation had more than 30,000 types of currency…"




    what's unfounded is your education or maybe nonexistent would be more accurate

    Panic of 1792
    Panic of 1796–1797
    Panic of 1819
    Panic of 1825
    Panic of 1826
    Panic of 1837
    Panic of 1857
    Panic of 1866
    Black Friday 1869
    Panic of 1873
    Panic of 1884
    Panic of 1893
    Panic of 1896
    Panic of 1901
    Panic of 1907
    Panic of 1910–1911
     
  24. akphidelt2007

    akphidelt2007 New Member Past Donor

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    He doesn't listen to facts. He's been here for years and been told this stuff repeatedly. His ideology of anti-Govt/anti-Fed is so indoctrinated in his mind that he literally can not comprehend any other alternative point of view no matter how much facts or logic is brought to the table.

    He has basically turned his economic beliefs in to a religion.
     
  25. unrealist42

    unrealist42 New Member

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    Well yes, Austrian economics has no basis except blind faith.
     

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