Posted on 01/03/2017 7:22:57 PM PST by OddLane
An essential element of the unorthodox doctrines, advanced both by all socialists and by all interventionists, is that the recurrence of depressions is a phenomenon inherent in the very operation, of the market economy. But while the socialists contend that only the substitution of socialism for capitalism can eradicate the evil, the interventionists ascribe to the government the power to correct the operation of the market economy in such a way as to bring about what they call economic stability. These interventionists would be right if their antidepression plans were to aim at a radical abandonment of credit expansion policies. However, they reject this idea in advance. What they want is to expand credit more and more and to prevent depressions by the adoption of special contracyclical measures.
In the context of these plans the government appears as a deity that stands and works outside the orbit of human affairs, that is independent of the actions of its subjects, and has the power to interfere with these actions from without. It has at its disposal means and funds that are not provided by the people and can be freely used for whatever purposes the rulers are prepared to employ them for. What is needed to make the most beneficent use of this power is merely to follow the advice given by the experts...
(Excerpt) Read more at mises.org ...
Ludwig Von Miss?
Yup.
Complete adoption of Socialism will,, indeed, end the Business Cycle. The tradeoff for that great economic benefit is that the serf class will see steady and irreversible economic decline as the State (the rulers) confiscate everything bit by bit in order to keep the enterprise going. But there will be no business cycles any more. An unchanging and steady decline to poverty and even is not a “cycle.”
As a conspiracy theorist with a hatred of the Elites, I posit that all inflation is simply a tool to strip wealth from the producers of society and give it to the super-wealthy.
There is no reason for inflation. It is a weapon against us little people.
-—The fundamental error of the interventionists——
Or there is no error at all because the intervention is designed to induce wage price inflation that devalues the currency and thus the debt denominated in the currency.
Royal debt has been a problem since the beginning of time. Various schemes for making smaller coins or alloying the metal or who knows what are used for devaluation. Devaluing paper money that has no value requires more effort.
Obama purposely left this painful devaluation to the next president.
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