‪"The Cluster of Errors" - The Austrian Theory of Boom and Bust

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Are Austrians a broken clock that's right twice a day (when there's a bubble that busts)? Why do entrepreneurs continue to be fooled by manipulation of interest rates by the central bank? In this EconStories mini-documentary, part III in our first series on the Mises/Hayek theory of boom and bust, Lawrence H. White addresses the expectations and the cluster of entrepreneurial errors that reveal themselves during a bust.

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16 сен 2024

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Комментарии : 99

@Rob-fx2dw 10 лет назад

The naivity of this whole article is in the question itself. "why are they fooled by the lowering of te interest rate?" That question is easy to answer: - they are not "fooled" by lower interest rates but if you are a financial organisations lending money then when the governent declares a lowering and makes the taxpayer pay for it by manipulating the market this way then they have no option but to follow what the rates are aor they will go out of business because they are in competition with each other. They are not monopolies like the Federal Reserve so must follow whatever the government manipulated rate is. If they don't folllow the guy down the raod will and they will have no business. There is no option other than that but to go out of business. There is no argument that lower interest "controls all movements in the interest rates or all movements in the economy". It doesn't but it controls movements over the medium to long term along with other decisions made mainly by government decision and legislation. That is why different countries are wealthier or poorer- Long therm government policy!! Why can't this guy work it out? It doesn't take much understanding to do so - all you have to do is start putting your own ideas to the test - Like:- What would the other perspective be ? How would that fit? What if every institution behaved like the Fed. What happened in other countries ? Rather than pondering things like "it must be what someone else says."

@Galgus2000 10 лет назад

Distortions of interest rates most affect investments that take a considerable amount of time to pay off, so I'm not sure I buy your "they have to go along with it because competition". You essentially follow that up with "low interest rates don't control movements in the economy, but they do in the medium and long term". Did you intend to say that it doesn't have a short term effect but has a longer term one? If so, how do you define short term? "Long term government policy" being a key reason for countries being wealthier or poorer isn't something I'd necessarily disagree with, but the phrase is incredibly vague. I'd say that government policy to stand aside and let free markets work leads to prosperity, and micromanagement to a weakened economy.

@Rob-fx2dw 10 лет назад

LightofLand Sorry if I missed explaning what I mean by what you see as the somewhat vague comment about long term government policy. More specifically I was thinking of allowing the market to decide rates with minimal interference rather than setting a specific rate around which other factors such as exchange rate adjusted either up or down. That policy should allow quick responses to changes in investment and currency adjustments caused by budgetary balances to work though financial markets. Presently governments have a policy but all too often it is slow to respond to changing circumstances and distortions follow. Examples are everywhere if one looks hard. It is an area money traders watch carefully to bet against government policy. In respect to the competition making businesses keep interest rates appropriate I make no apology for the comment itself. Finances and particularly loans and credit seekers respond rapidly to product changes by suppliers. Much the same as supermarket prices. In fact in many countries credit is on offer at local supermarkets and post offices. It is a very competitive market where institutions fight tooth and nail for the slightest advantages in rates and advantages. eg. like 0.25% or frequent flyer points if you join or several months of no interest on oustanding balances. Banks have to take an approach which covers short terms for all of their short term credit. (although in the USA the government bails them if they fail) . Longer term (over say 5 years or more) credit is s something which is dependent on working out currency stability of which the past and present government poilicy is a huge factor since wealth affects it. If the country's wealth is spent on such things as military agression which may well be a choice a government might have no option with then long term wealth is affected just as it was in WW2 in Europe. Zimbabwe is another example of government policy affecting credit through mainly destruction of agriculture and basic energy and othe infrastructure. Other long term policies like fixing exchange rates as we recently saw in Argentina is another long term policy which affected credit in that country. In this case foolish intervention in exchange rates failed demonstably but that didn't stop people betting against it for profit which was their perogative.

@Galgus2000 10 лет назад

Rob Mews Your post is a bit hard to follow, but from what I understand you are asking for the market, rather than the Fed, to set interest rates for a more stable economy: a measure I'd agree with. If the loaners were not bailed out I think they would have more incentive to look towards the long-term than the short-term. Use caps to avoid making walls of text.

@joecurran2811 2 года назад

@@Galgus2000 Break them up. No more too big to fail.

@Galgus2000 2 года назад

@@joecurran2811 They were neve too big to fail. Just stop any bailouts.

@alexanderdyalov8006 11 лет назад

The problem is that this train of thought has partly led to a) a humongous increase in Bachelor & Masters degree worth "nothing" in the free market, driving down the value of the whole "Intellectual investment". Intellectual inflation anyone ? Also, how can the average worker obtain more capital ? And which one of them would actually choose to take the risk & effort to try to increase their market value by learning skills & languages ? Factor the human aspect in.

@CLeach13 12 лет назад

Food, the number of regulations for any farm are staggering, not to mention fee after fee after, this might not be a big deal to the large coporations who have lobbied for these regualtions (as they can actually afford them) but for small bussinesses and entrepreneurs its a killer. Its makes sense though, many of the large corporations dont like nor want competition so as long as the government keeps new players from coming in, its only the big boys that can be succesful.This is just 1 market to

@regelemihai 13 лет назад

I still don't get it. What's the difference between "real savings", and the money that the Fed injects into the banks? Aren't both savings and liquidity provided by the central bank just money available for investment? The bank simply lends money; whether that money comes from the Fed or from the savings that exist in the banks is irrelevant.

@axe863 13 лет назад

Once one accepts the potential for strategic based inefficiencies, one cannot artificially limit it to Fed actions in an interdependent system

@loan987654321 11 лет назад

In other words, the more free a market, the better it will do. No giant booms with massive profits but no devastating busts either. What would you rather have, an average life with continuous but average growth or become a drug addict with awesome booms yet devastating crashes? The worst part is that if a bust is severe enough we might just overdose and civil war might brake out or a coup takes over the government.

@djb5255 13 лет назад

The worst part for banks here is that they literally have no way to remain competitive by practicing sound business.

@EzekielTheWatchman 12 лет назад

We don't need other countries to buy our dollar we need them to stop buying it actually (one of the biggest misconceptions known to economics). Our bond interest rates are at all time lows (Like Japan), we are about to start selling them at negative interest rates it is so low (that means you pay to lend the govt. money). So we need to spend more to fix that. Lastly the only reason our debt can never hurt us is if the public owns all of it and it feeds into our loop with buying our own bonds.

@CurtHowland 14 лет назад

@oiuoiu988 You don't understand that I was showing they are not analogous. "i think im done with this." Excellent. Thank you for your time.

@oiuoiu988 14 лет назад

@AranelVetinari well thank you for pointing this out. my question was an honest to goodness question. do you find it strange that he's having such a hard time admitting it?

@regelemihai 13 лет назад

Yes but, I'm talking about what constitutes "real savings." If the amount of savings that existed in the banks (not artificially printed money by the FED) was very large--just as it is now with the money printed by the Fed--then the result would be the same. Money is money; it doesn't matter if comes from people or the Fed. That's what I wanted to communicate.

@LIB3RTARIAN1337 11 лет назад

You misunderstood what I meant. Here it is again better worded: "Make things worse," in the symbology/analogy in the video is referring to Keyne's drinking more alcohol. The ABCT is often compared to a heavy night of drinking (boom) and the hangover the next day (bust). Furthermore, the fact that a black woman was in the video at that point does not imply they are an interracial couple. or that this was the symbol/analogy intended. You don't understand imagery if you don't get it by now.

@axe863 13 лет назад

@HeilLoki I admit that I only have a limited sample and I may have become hyper-sensitive to arrogance (filter out all non-arrogance and exaggerate arrogance because of prior idiosyncratic events that have biased me).

@axe863 11 лет назад

Once one uses the potential for strategic inefficiencies to rescue a model from the illogical position of permanent agent-group irrationality, they open up the flood gates for strategic inefficiencies via exogenous and endogenous sources.

@oiuoiu988 14 лет назад

@CurtHowland the only relevant distinction to be made is that inter-subjective consensus on whether murder is acceptable or not was reached long before statute law, or anything like it, was even conceived of. it is still codified by statute law. its not analogous to the speed limit. and its Ought, not Aught. did the quotes around illegal have something to do with statute law? because you said you dont want anything to be "illegal".. notice i did not pu quotes around illegal when i asked.

@Torgo1969 12 лет назад

3:57 & following is gold. More capital per worker is what leads to increased wealth & prosperity. If a worker has invested capital in increasing his productive skills, then he may demand greater compensation from the employer. If the employer has invested capital in new machines & tools to let the workers use, then the employer is entitled to the lion's share of increased future revenue. Workers need to invest in themselves & the skills they bring to the job. Stagnation must be disincentivized.

@EzekielTheWatchman 12 лет назад

at least 20%, like Iran, but they don't report accurate numbers) because when our currency inflates prices adjust but we will put taxes on their products so we don't buy as much and destroy their economy making them have to increase their own inflation (Booyah, USA), yet a deflation environment is exactly what the Chinese want so we have more purchasing power to buy more of their products and keep them afloat. (deflation means unemployment study the Phillips graph). Thanks for reading and study!

@oiuoiu988 14 лет назад

@CurtHowland so is money basically just an emergent feature of voluntary interaction, like interest rates and private property?

@tugalord Год назад

Yes.

@CLeach13 12 лет назад

@ibringthereals I would love to start my own bussiness, problem is because of governemt regulation it is far to expensive for majority of americans to get off the ground with their bussinesses, one of the reasons why our jobs are being sent over seas as well. Most people i know who have started their own bussinesses had to go over seas to do so. The only states that dont have infastructure problems are those that handle them, themselves, without federal intervention.

@EzekielTheWatchman 12 лет назад

Sorry again for my argument being "absub" whatever that means, but I honestly think we can keep up with a 2-5% inflation rate which is expected of a healthy growing economy (since employment even causes inflation, but of course that is a terrible thing too, we should just go into massive deflation and rid our economic system of this terrible employment derivative!). May I again remind you that hyperinflation is above 50% when would we ever reach 20% without doing something to lower it?

@HeilLoki 13 лет назад

@axe863 What you mean exactly? Do you mean, that they have big egos about themselves personally or that they are very proud of their country? I read a study, that says, that we're prouder of our country than most (not all of them) of the other europeans countries, but we're miles away from the US-level. ;) I never heard, that we ourselves have big egos. I cant confirm that. 7 trips to europe for some weeks, just isnt enough time for this big variety of cultures - a small sample size indeed. ;)

@CurtHowland 14 лет назад

@oiuoiu988 "do u wish to abolish my right to trade in fiat dollars if i want?" Where did I ever say that? As you say, abolishing legal tender laws will let people choose whatever form of currency they want for money. I expect that gold/silver will be generally used, but I see no reason why shares of Microsoft wouldn't be usable as money too. When I said "more principled anarcho-capitalists", how could I have not meant Rothbard, Hoppe, Block, etc?

@LIB3RTARIAN1337 11 лет назад

It isn't even an interracial couple and the symbol there ways Keyne's drinking more which will make the eventual hangover worse. I'm sure it was just a coincidence that the black woman was in the video at the same time the lyrics said that.

@HeilLoki 13 лет назад

@axe863 Interesting to hear that. I really never heard or read that. Many austrians use to think that about germans... but that is explainable with our history. We've got some kind of inferiority complex to our "big brother" germany. Never calls us "germans", because we hate to hear that. In fact we are ethnical germans, just dont tell us about it. ;)

@CurtHowland 14 лет назад

@oiuoiu988 "its not analogous to the speed limit." You have it backwards. I was showing how it was different from a speed limit, and you agree it is nothing like a speed limit. So we agree, again, but you don't seem to realize it.

@oiuoiu988 14 лет назад

@CurtHowland no it is weird because asking "where did i ever say that?" implies that you think i accuse you of saying that. me asking the question demonstrates that i havent made an assumption about it. you copying and pasting my question demonstrates that you were aware that i was asking it... i could go on, but do you see what i mean about weird communication?

@spark300c 12 лет назад

Market manipulation which includes sudden retraction of the supply money for gain of the bankers. 1920 the bankers lean like crazy and plan a day they would recalled the loans that day was . plus the saving rate is over looked. plus the boom mind set where people were not looking were the demand was coming form just the price. the deficit reserve ratio requirement from the world for all banks in the 1980 was change from 10 to 1 to 8. loanable funds run out in 2008.

@oiuoiu988 14 лет назад

@CurtHowland yes.

@EzekielTheWatchman 12 лет назад

And more capital means less employment just look at the agriculture industry which 3% work in now... And then also add that with the Phillips curve (stating inflation is inversely proportionate to unemployment) we are going to get even more unemployment in a deflationary society. But if you want another great depression go ahead... Like one wall-street banker once was quoted saying, "Your ignorance will be my profit".

@EeeScape 12 лет назад

The reason that it's more expensive in the US is not because of regulation, it's because the US population will not work 12 hours a day for a pennies on the dollar. Eventually, China will get a push back. But that will take years. In the meantime, the US standard of living will drop. I hope you aren't thinking that the 1999 dot com bomb or the housing boom is what we need to go back to? Natural growth is slow, not a boom. Yet, in your mind, it's just government getting in the way.

@axe863 13 лет назад

@HeilLoki "I was in hungary last year and i was amazed! " Why did you have such low expectations? :P Im just messing you. This really ballooned out from a simple question :P

@KingOCleveland 12 лет назад

the real problem is they dont know its fake at the time, its in hindsight that we know it was

@oiuoiu988 14 лет назад

@CurtHowland look, this exchange does not make sense, "do u wish to abolish my right to trade in fiat dollars if i want?" Where did I ever say that? i asked you a question and you answered as if i assumed i knew the answer WITHOUT ASKING THE QUESTION.... the one you were responding to. thats weird. the reason i brought up rothbard is because i assumed thats what you were talking about... so i dont even get what your question means... its like your communicating in a weird way. huh?

@oiuoiu988 14 лет назад

@CurtHowland "No, I still see where you ask me a question that has nothing to do with what I had been saying." ohhhhh, so im not allowed to ask questions that you dont approve of first? just admit what happened man. its right there for all to see. there are obviously people out there who wish to make paper money illegal, i wondered if you were one of them after reading your comment. you responded as if i had assumed you were one of those people when obviously i had not.

@CurtHowland 14 лет назад

@oiuoiu988 "just because something is exchangeable doesnt make it money" Money is a function. Be it rocks (Polynesia), cowrie shells (North America), obsidian (Asia minor), cattle (pretty much everywhere), tobacco, wheat, silver, gold, copper, slaves, women, salt, whatever. Money is whatever people use for money. It is the medium of exchange, the use of which allows economic calculation. Even fiat currency is money, when not used as wallpaper.

@EzekielTheWatchman 12 лет назад

You can't always compare a country debt to your household debt, just look at japan's economy and study it their debt is double ours and so high it doesn't fit on the charts (they just got out a deflationary economy which is what we are entering, like the great depression). Next the reason their debt and ours doesn't matter is that 85%+ of our debt and Japans is owned by the citizens which is in turn bought from other citizens through bonds (get it, it is a loop ;D).

@HeilLoki 13 лет назад

@axe863 Second fun fact: People in Salzburg think that people in Vienna are arrogant. People in Vienna think that people in Salzburg are arrogant.

@spark300c 12 лет назад

@sfjeff1089 reason being they have let people forget about the great depression before they try ticks again. the other bust were bad not as bad plus the generation that live through the great depression save a lot more which act buffer for shocks.

@oiuoiu988 14 лет назад

@CurtHowland well then we agree on that much.

@maggot1111666 12 лет назад

It's not free infrastructure, the business had to pay for it.

@CLeach13 12 лет назад

We cant, the only tool the fed can use is the intrest rate and that is already brought down too 0, it wont go any lower, they shot all of their bullets and when our next economic recession hits, like they always do, this phoney economy will come crumbling down. The reason things seemed so bad a few years ago was because that was reality, we have simply papered over the problem as we have done countless times in the past with more cheap money. Hyperinflation is only one scenario.

@CLeach13 12 лет назад

It was the regulation of the financial markets and easy credit by the fed in both instances that fulled the typical boom bust. Of course the US standard of living will drop, weve been liveing beyond our means for decades, its simply this illusion of a false economy dissipating.Until you can get government regulation out of the way then you will not have growth on the individual level. perhaps the nations GDP will go up, along with inflation, but that only helps the federal government.

@axe863 13 лет назад

@HeilLoki Why do Austrians appear to have,on average, the biggest egos? Ive been to Europe seven times and no country's average level of ego seems ( I have a limited sample size and there is a subjectivity of memory) to compare. Im not trying to push down your country

@HeilLoki 13 лет назад

I'm from Austria and i can tell you... well, our politicians dont even talk about austrian economy... they are 100 % Keynesians... and i hate it.

@ibringthereals 12 лет назад

the circular reasoning is circular

@CurtHowland 14 лет назад

@oiuoiu988 Ok, just curious. I've found Hayek to have given ground on a few too many fronts for my tastes. It may very well have been him "recognizing reality", by admitting that printing fiat money "could" work if done "right", but I prefer the position of standing firm that printing money simply does not create wealth. Like Milton Friedman, Hayek makes a good introduction, but I prefer to ride the wave of that initial plunge directly to the more principled anarcho-capitalists.

@sfjeff1089 13 лет назад

Aptly named video! Unless he meant someone else's errors... First problem is assuming the conclusion in the question. "How long have you been beating your wife?" The question is not why there is a business cycle, but whether the business cycle got worse since the fed was created. Actually the business cycle was much worse before the fed was created than after. So his question, why is the business so bad since the fed was created is just plain ludicrous.

@CurtHowland 14 лет назад

@oiuoiu988 I see. Well, it was nice agreeing with you where we did. Have a nice day.

@HeilLoki 13 лет назад

@axe863 Well, only 20 years after the fall of the "Iron Curtain" they really made a great country. I indeed didnt expect that. They also have Texacos. We dont have them here in Austria. It's open 24/7... that would be impossible in Austria! I was amazed about that country and how they know, what freedom and capitalism is all about, but we still are stuck with ridiculous socialist ideas... ;) Well, it keeps up ballooning... LOL

@CurtHowland 14 лет назад

@oiuoiu988 "do you see what i mean about weird communication?" No, I still see where you ask me a question that has nothing to do with what I had been saying. Ok, let me change that. Yes, it is weird for you to ask something completely outside of anything that had been said before, implying that I had asserted somewhere that anyone's freedom needed to be curtailed.

@oiuoiu988 14 лет назад

@CurtHowland what about freedom? do u wish to abolish my right to trade in fiat dollars if i want? we just need to end legal tender laws. if people choose hard money then fiat money will be worthless. if people choose fiat money over hard money, then so be it. afterall, value IS subjective. people often confuse and misrepresent rothbards position on free banking but his position was the same as mine.

@CurtHowland 14 лет назад

@oiuoiu988 "so why dont you tell me how i could have "re-formulated" my question." Ok, let's try a few variations: "Would you make fiat currencies illegal?" "Would you prohibit fiat currencies?" "How would you deal with fiat currencies?" and for the other question, "What about things like murder?" Notice that they ask the same question, but without the accusation. Where you see "ZERO assumption", I see "abolish my right" which is an unwarranted attack.

@CurtHowland 14 лет назад

@oiuoiu988 It certainly seems to be, but there are far more eloquent people who have defined it prior to me. "The Theory Of Money And Credit" for instance.

@CurtHowland 14 лет назад

@oiuoiu988 "thats weird." Not at all. I never said anything about abolishing choice, and agree with you that getting rid of legal tender laws is a good thing that will increase freedom and lead to stronger currencies being used. "its like your communicating in a weird way." Yes. It's called "agreement". Maybe that's never happened to you on RU-vid before.

@oiuoiu988 14 лет назад

(cont) what the quotes were meant to express or denote but you didnt. so why dont you tell me how i could have "re-formulated" my question... please, because at this point it's getting ridiculous that i have to explain this stuff to you. how could i have asked it differently? this seems to silly to be real so do me a huge favor and convince me i'm wrong and i'll gladly admit i'm wrong.

@oiuoiu988 14 лет назад

@CurtHowland your example is nothing like what i said. you dont want murder to be illegal?

@EeeScape 12 лет назад

Also, you say, "I would love to start my own business." I ask you this? Selling what?

@maggot1111666 11 лет назад

It doesn't really matter if some businesses dodge taxes. The fact of the matter is, if there was no market there would be no roads.

@axe863 13 лет назад

@HeilLoki Well, America is number 1 in a lot of things ;) lol :P.... I was talking about self driven ego. Austrians sort of remind me of individuals from Connecticut.

@oiuoiu988 14 лет назад

@CurtHowland it must be analogous in order for you to make the comparison. the comparison is BASED ON THE PREMISE OF SIMILARITY, i think im done with this.

@EeeScape 12 лет назад

The answer: human nature. More specifically, American human nature to get rich quick minus a perceived risk.

@CLeach13 12 лет назад

@ibringthereals while keysians think if you spen more money less effectively then prosperity emerges. China is following the us down that road, just look at the real estate boom bust cycle china is going through, they have whole cities deserted because of over construction. Its sad when a rap video is more informative than a economics text book :(

@HeilLoki 13 лет назад

@axe863 If we would ever try to go back to monarchy or if we would try to rule some other country, i would become a rebel immediatly! Watch the movie "V for Vendetta" and you know, what i would do! The Habsburgs were from Switzerland - blame the swiss! LOL I was in hungary last year and i was amazed! I really liked it. I didnt stay long there, but hungarians are really nice people... especially female hungarians... ;)

@axe863 13 лет назад

ITS A TRAP 1:13

@ibringthereals 11 лет назад

You're a funny guy. Calling something a coincidence neither makes it true, or fogives it.

@axe863 13 лет назад

@HeilLoki Lol maybe its in my blood :P I am Hungarian and we were the inferiors in the Austro-Hungarian empire..

@CurtHowland 14 лет назад

@oiuoiu988 "so im not allowed to ask questions that you dont approve of first?" Don't be a jerk. "i wondered if you were one of them after reading your comment. you responded as if i had assumed you were" Indeed, that's how you worded your question. For example, "When did you stop beating your wife?" I, personally, do not wish anything to be "illegal". I abhor statute law.

@axe863 13 лет назад

@HeilLoki The Austrian Imperialist trying to get with my Hungarian women...How dare you !!!! LOL :P

@EzekielTheWatchman 12 лет назад

OK maybe it's because of the ignorance of the many that "we are in such dire straits these days" and the lack of certain economic knowledge to as why the public debt can never hurt us as long as it is 70%+. Your whole point supporting the republicans defaulting is madness they almost caused a world economic collapse and hurt the other european economies. We are doing pretty well for these tough times. The value is not being debased by much when wages adjust at a mere 2-5% a year.

@CLeach13 12 лет назад

You talk about Japan as if things are going great over there, they have had 2 lost decades thanks to their governments intervention and the US is on a similar track, although because our status as the world reserve currency becomes a major issue and more and more countries follow suit with nations such as china, japan and india with their own seperate financial agreements cut out the US dollar and no one needs to buy them anymore. The chinese dont need the us, but we need the chinese badly.

@CurtHowland 14 лет назад

@oiuoiu988 Have you visited Mises.org or /user/MisesMedia ?

@LIB3RTARIAN1337 11 лет назад

Anyone who supports government intervention in the economy is supporting corrupted capitalism (crony capitalism, corporatism, facism). Free markets would keep businesses from taking advantage of the public because they would not have government power backing their attempts to put down competitors and would have to compete for consumers. AE is science, not ideology. Libertarianism, anarchocapitalism or any other political philosophy is the ideology. You don't know what you're talking about.

@EzekielTheWatchman 12 лет назад

And Keynesian economics is the libertarian point of view for a reason since deflation makes the wealthy richer and the bankers hate it because it's harder to make money in a deflationary society for the bankers. deflation=harder to pay off debts (remember wages adjust to inflation even if there is a time lag)

@LIB3RTARIAN1337 11 лет назад

The problems with "capitalism" that you are talking about are due to the government being in bed with business. Businesses lobby for complicated tax codes and subsidies so that they can avoid taxes through loop holes and use the government to steal money from the public. They also use government to try to keep other businesses out of their industry. So once again, government power is the problem. You completely miss the fact that whenever businesses hurt consumers, they are in bed with the govt

@tugalord Год назад

Yes.

@ibringthereals 11 лет назад

You both make fedish of "the market", as if trade can never be corrupted. Corrupt Capitalism is not capitalism, and apologies for ideologies and profiteering are merely propaganda. Also, I understand symbols. I simply don't agree with you. Nothing you say makes you more perceptive or definative on the meaning of things, except egoism.

@CLeach13 12 лет назад

You just prove how absolutly absub your whole argument is, this now public debat was not allways public debt, it is debt that should have been defaulted on insted of passing the bill from the private firm to the public sector, this is facism. Lol Im so sorry for your future if you believe that any economy can buy goods with money whos value is being debased. Typical keynsian, its not working, spend more money lol and we wonder why we are in such dire straits these days.

@ibringthereals 12 лет назад

For all their talk about Start Ups, how many of these Hayek groupies have started a business, or even attempted to start one to know what these "Job Creators" actually know? How many take free American infrastructure for granted, and all the things businesses use but would rather pay for, or build, produce or supply because the margins are too low to justify their effort? The rap stuff is distracting. And you used an interracial couple to show "make things worse"? deerpty deerps

@EzekielTheWatchman 12 лет назад

Federal control is keeping this economy afloat check out the deflationary spiral emerging... Inflation is not a problem here study the inflation rates. Next point is that America has the highest corporate tax rate idiot... You can make a corporation in America in less than 2 weeks look it up. Last thing is Keynes promoted lower taxes and higher spending. So deficit spending (which if you study it and figure out that you can't compare a country to a house starts to make sense).