Thursday, May 12, 2011

Wall Street versus the Tea Party


Move over, Milton Friedman: Make room for tiny Northwood University and the Austrian economist Ludwig von Mises









6 comments:

Mike Norman said...

Seriously, what is John Boehner smoking?

Adam said...

The reason for this is because the Austrians got lucky.

They blame Fed-induced low interest rates for the bubble and the blow-up of it.

Minsky's analysis destroys Austrian ones. The Austrians are confusing correlation with causation.

The Chicago School was part of the so-called Great Moderation. Not only are the Austrians more pure than the Chicago school they "predicted" the crisis.

Tom Hickey said...

" they "predicted" the crisis."

Like a broken clock shows the correct time twice a day.

Matt Franko said...

Tom,

This is from the Slate article: "Even Milton Friedman, in an interview with Reason, recalled being somewhat annoyed when Mises stormed out of a meeting of economists who had been talking about the proper levels of taxation with the angry declaration that "you are all socialists."

As MMT calls for lower taxes at this point (bottom up), this may be some of the "common ground" potentially between MMT and the Austrians....

Resp,

sforst said...

His statement about "crowing out the private sector" is like standing on the banks of the Mississippi today and complaining about the ravages of the drought.

Is there any evidence to support such a backwards conclusion? What am I missing?

Tom Hickey said...

You aren't missing anything. It is bonkers.

Business is sitting a huge piles of cash, buying back shares, in short, doing anything else but investing because they aren't getting the signal to invest from effective demand. Consumers are still underwater and repairing broken balance sheets, rebuilding savings, or saving in the face of future uncertainty.