Recession and the Austrian School

All is vanity. -Ecclesiastes 1:2

Who is right about the current recession?

Most economists from the Austrian School of Economics have been saying since the beginning (before most mainstream economists admitted we were even in a recession) that this economic downturn would be long and prolonged, likely a depression.  They are still saying this.  None of the failed Keynesian economic policies will change this for the better.  They will only prolong the agony, as Hoover and FDR’s interventions created and prolonged The Great Depression.

The Cold War taught us this: governments are not only unjust stewards of resources, but they are tragically inefficient as well.  Tens of millions died, for instance, due to Communist failures to allocate food properly.  If governments cannot even allocate food properly, the most basic of necessities, what makes us believe they are able to allocate capital, education, the environment, and health care (to name just four examples) more effectively than we as individuals are?

Mainstream economists have said, and some still say, that the recession will start to end this year.  This is tom-foolery.  We are already starting to see some mainstream shift in opinion (i.e. this news article).  This shift will only continue, validating the conclusions of the Austrian School of Economics.

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2 Comments

Filed under Austrian Economics, fiscal policy, Libertarian, monetary policy, politics, recession, role of government

2 responses to “Recession and the Austrian School

  1. I always wonder why so many Americans continue to listen to the very same people who told us a year or two ago that we were NOT heading into an economic downturn (i.e. the Federal Reserve and treasury department leadership). Likewise, in looking for solutions, why don’t we look to those who predicted this was going to happen (i.e. the Austrian Economists)? If they say it coming because they knew which principles had been violated, then they also should know what fixes we need to make to get back on track. Ron Paul, Peter Schiff, Lew Rockwell, and others should be listened to by more Americans.

  2. mormonpaleo

    Astute observations brother. Central economic planning just doesn’t work. Good thing we have people like Ron Paul, Peter Schiff, Lew Rockwell, etc. that help the scales fall from our eyes.

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