Economics

Mises Institute - Austrian School of Economics   

Keynesian economics, also called Keynesianism and Keynesian theory is a macroeconomic theory based on the ideas of 20th century British economist John Maynard Keynes.

Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and therefore advocates active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle.

Its never works,  but its a favorite of politicians. It leads to inflation, massive national debts, and is destructive to a free market economy.   Does price controls ever truly help? Should the Federal Reserve have so much control over the national currency and the value of your savings account?

The opposing viewpoint to Keynesian theory is provided by the Austrian School.   It is not a field within economics, but an alternative way of looking at the entire science.

Why Austrian Economics Matters 

Ludwig von Mises Institute

Visit MISES.ORG   the website of the world class think tank on Economics. It is the leading scholarly center for research and teaching in the Austrian School of Economics.

Mises has articles and videos on the History of Economics,  Inflation,  the Federal Reserve,  the works of Murray N. Rothbard, and other Economic Scholars.

Ludwig von Mises's colleagues in Europe called him the "last knight of liberalism" because he was the champion of an ideal of liberty they consider dead and gone in an age of central planning and socialism of all varieties.   Born in 1881, he taught in Europe and the Americas.  He died in 1973 before the dawn of a new epoch that would validate his life and ideals in the minds of millions of people around the world.

Bohm-Bawerk's greatest student was Ludwig von Mises, who developed "The Theory of Money and Credit".    It elaborated on Carl Menger's "Principles of Economics".   It showed that money had its origin in the market, that money and banking ought to be left to the market and that  government intervention can only cause harm.  

Von Mises argued that when the central bank artificially lowers interest rates, it causes distortions in the capital-goods sector of the structure of production.   When malinvestments occur, an economic downturn is necessary to wash out bad investments. 

Washington Politicians and the Federal Reserve have bailed out the corporations on Wall Street that made bad investments.  The American middle class and future generations  are forced to finance the TARP and the Federal Reserve loans.  This crime against free markets is corporate welfare.  It is made possible by government directed economic decisions that shut out the free market and its natural cleansing of bad investments.

The more the Keynesian approach is pursued, the longer the economic misery persists.   Study how FDR stifled the free market and prolonged the American depression.   All the government intervention by  liberal President Roosevelt failed to solve the economic misery.    The Federal Reserve was created in 1913.    The whole justification for the Federal Reserve to take control of the national monetary system was to prevent things like the Great Depression that started in 1929.   Nothing so enormous ever transpired prior to 1913.    It did not take long for the Federal Reserve and the Washington Politicians to get the country into a disaster and then stifle an economic recovery.  

Ben Bernanke and the prior Federal Reserve Chairman are not independent of Washington Politics.   Neither do they warrant the elite economic status that the media bestows on them.   Their methods are not based on a free market, but that of a centrally controlling economic interventionist.  Their failures are clouded by political propaganda.

For your enjoyment, listen to this recent video:

or Counterfeiting Made Easy at the Federal Reserve