Neu Leonstein wrote:Mercator Terra wrote:We're in recession due to alot of bubbles created by the federal bank. I would go into detail but atm im done with explaining things. I can recommend book articles etc but im tired and freezing my ass off.
Don't bother, I've read them all. And I do think the Fed kept rates too low for too long. But it's hardly the only, or even the main reason. The hilarious thing about the Austrians is that they emphasise the nature of the economy as an almost biological organism, unfathomably complex and driven by interactions between private individuals subject to non-mechanical or -linear relationships that we from the outside can't reliably measure or predict.
And then they say the government is at fault for everything. Am I the only one who sees the contradiction?
The economy does act like one huge body if you think about it, take a metaphor, the people are the blood and their money which they carry is vital substances which help build other parts of the body (businesses and industry, homes etc). And like this, if not enough oxygen can get to parts of the body they die or their growth is stunted, juts like in the economy. Of course the economy is unfathomably complex. We can measure general trends in purchasing behaviour etc. Anything involving human thought will be subjective, because no matter how many people think ratinally and objectively there is still possibility of people not doing so, or making mistakes- that doesnt happen in nature, things dont make mistakes because there is no goal to reach so there is nothing to lose. So if humans are involved where choices and behaviour are involved and you'll have to work off trends, but there are certain things which occur as a result of their actions which can be measured as absolutes. Say, if this person puts their money here, this will happen. Like if we put loads mroe money into the economy, infaltion will happen. But we couldnt say that a person will choose the lowest priced or best value every time, there is just a trend to say so. Some people are more vain than other and will buy the most expensive things for a better social appearance etc.
Government then. Governmentcan do things right or wrong with it's money, the same as people can of course. The government even maybe has more information and expertise on economics available to them. The get things right and make mistakes sometimes. But as the economy is subject to cause and effect, the effect of them due to the greater amount of money them use leads to greater effects if they make mistakes. Also, they take the hands out of a large number of people, some who may make right or wrong decisions, and reduces the span of risk. Plus, governments create laws and regulations to go on the economy, something that does not occur naturally in a free market, which goes against it's 'nature'. It prevents the market for getting what they need and want and then put money in other areas. This is social engineering. This is the use of force to stop getting people what they need and want to make their lives better, this is preventing supply and demand working, and it creates all kinds of economic and moral problems.
