PCD would like to welcome its newest author, Glenn Jacobs! Glenn is a talented writer who has his own freedom-loving blog,The Adventures of Citizen X, which is a must-read! He’s also well-versed in austrian economics and is capable of expressing it in easy to understand terms. My wife is a big fan! She’s told me that his open letter to Robert Reich was the best expression of free market economics she’s read. If only our federal administrators were as receptive. On behalf of everyone at PCD, welcome aboard, Glenn!
From Robert Murphy:
In one sense, the critics are right when they ask, “Oh, so we should just sit back and do nothing and let the market fix itself?” Yes, that would be a perfectly good idea. The whole reason we are in a recession in the first place is that the capital structure of the economy had become unsustainable due to the Fed’s massive credit expansion following the dot-com bust and 9/11 attacks. Resources â€” most notably, labor â€” are currently idle, because the economy needs to readjust. Overextended lines such as housing and finance need to shrink, while others need to expand. (And no, I don’t know what those understaffed lines are; that’s why we have a price system.) Because Americans lived beyond their means for so many years, they now need to live below their means, consuming less while they rebuild their checking accounts and portfolios.
But Murphy does go on to detail suggestions for areas where Obama can do something that would truly stimulate the economy … cut spending, taxes and regulations. Check out the full article!
It’s simple, government spending is not commensurate with people’s needs.
Quote from the quiz, “Are You an Austrian?,” test yourself here.Â Feel free to share and discuss results under comments.