The View From 1776
Monday, June 14, 2010
The Daily Socialist - 6/14/10
Liberal-progressive acolytes of the Keynesian secular religion usually assert a false dichotomy to defend their deficit spending prescription as the cure for recession.
They state as fact that the choice is between government stimulus programs or people starving in the streets. This, of course, ignores the fact that before Franklin Roosevelt’s New Deal our government never presumed to manage the entire economy; yet the economy always recovered from recessions and moved ahead strongly when the market was left free to liquidate uneconomic investments in inventories and production capacity without government intervention.
Tender hearted New York Times propagandist Paul Krugman mischaracterizes the Austrian school of economics, as do most liberal-progressives, alleging that Austrian economists wish to throw people into the unemployment lines and foreclose upon their homes. In fact, Austrian school economists focus upon preventing severe recessions by curbing the easy money policies that cause them.
By analogy, Krugman believes that the only cure for a hangover is another barrel of whiskey, that it is impossible for a drunk to drink too much more whiskey; that rehabilitation and adherence to the AA program is not worth consideration.
Krugman’s big-spending on borrowed money, the Keynesian prescription, was a disaster during Roosevelt’s New Deal, when unemployment for eight years never dropped below double digits. And the experience is being repeated today under the socialistic Obama administration.