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Message: Rothbard - America's Great Depression

Rothbard - America's Great Depression

posted on Sep 19, 2008 06:58AM

Sorry for all the history, I know I am not discussing Tyhee specifically, but I believe what we are experiencing right now is so big that the only way to put it into perspective is to compare it to the only things it is comparable to, the Great Depression and Weimar's Hyperinflation.

Rothbard, in America's Great Depression, summarizes his thesis by providing the six ways that government can prevent the adjustment process after an inflationary boom, and ensure that a recession turns into a depression. Here they are, I believe we are a perfect six for six in repeating them all (p. 20):

1) Prevent or delay liquidation of shaky businesses.

2) Inflate further.

3) Keep wage rates up.

4) Keep asset prices up.

5) Stimulate consumption and discourage saving.

6) Subsidize unemployment.

It is amazing how none of our leaders seem to have learned a single thing from history, only 70 years ago.

-Hysteria

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