Oddbean new post about login | logout America, before they introduced these programs.
You mean like the America that created the Great Depression?
Yes, free market capitalism created the great depression... 🤣
It literally did. Laissez faire government, stock market speculation, unregulated financial industry and income inequality and over-production all contributed to the collapse of the economy. That’s why programs like these exist, and it’s why we haven’t seen anything nearly as severe ever since.
https://cdn.mises.org/Americas%20Great%20Depression_3.pdf
Figured you would cite Rothbard! I’ll have a look at this. As a guy who majored in this stuff, though, what I’ll say is that there is little evidence that the principles of Austrian economics can work (at least better than the status quo) in a large, late-stage capitalist society like the US, but it is fun to think about how it might look.
Ha don't cite a major. That does the opposite of what you think. "I've been professionally brainwashed by Keynesian propagandists, trust me"
Never said you should trust me, just saying I’m not surprised you cited a controversial fringe economist with little empirical data to support his theories 😉
Likewise, I am not surprised you cited a degree. Have a good one, man!
🤝 Btw I’m not dismissing your argument at all. After all, I, too am a bitcoiner, so at the very least I take interest in commodity-backed currency. It’s just hard for me to accept Austrian economics and anarcho-capitalism at face value without a healthy dose of skepticism, since we haven’t really seen those things work in modern history. Still, I’ll read the paper you shared
Correct. When there is too much malinvestment you need recessions or even depressions to clear out shit businesses. The alternative is bailouts, central planning and inflation. Pick your poison
Alright but like… on one side, poverty and death, and on the other, inflation and bureaucracy. I know what I’m choosing.
Inflation pushes the most vulnerable further into poverty. Social welfare might keep some alive, but it’s akin to starving a patient but keeping them on life support.
Nah, inflation does erode un-invested wealth over the years, but it doesn’t evaporate the $30 in a poor person’s pocket faster than they can spend it. Poor people don’t earn enough to accumulate any wealth therefore inflation doesn’t make them poor. The issue is that too many jobs don’t pay living wages or provide adequate benefits. Yes, inflation does increase the cost of living over time so in that way it’s part of the problem. But imo the real problem is a distorted labor market.
Examine that first statement again with anyone living in a high to hyper-inflating economy. The second statement makes no sense to me. If you have no wealth, inflation hits you the hardest. This is undeniable. Rising costs of goods and services means you have less. A surefire way to distort labor markets is fiat currency and expanding government interventionism.