SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Politics for Pros- moderated
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Maurice Winn who wrote (465178)1/15/2012 8:58:27 AM
From: skinowski11 Recommendations  Read Replies (2) of 793933
 
The value of Ron Paul's ideas is that he is helping promote the ideas of von Mises and other "Austrians". What is shocking is that the still reigning economic fallacies are so persistent. Why is that so? Because Keynesian pro-spending theories are intrinsically pro-government. They justify high taxes and high spending by the government -- and money is power. The governments love them and need them.

Did you read about the old "Broken Window" fallacy? I'm sure you know about it. That's the one about a boy who breaks a window. The shopkeeper then calls the glazier who replaces the window. This event triggers an avalanche of economic activity -- the glazier uses the money to pay the shoemaker, the later will pay the grocer, and so on. In other words, the braking of the window was supposed to be good for the economy.

Bastiat indicated that this line of thinking misses the other, less visible side -- that the shopkeeper, because of the broken window expense, may have lost an opportunity to expand his business and to hire more workers. Or, he could have lent his savings to someone else who could have started a new business, etc., etc.

There is no difference between the broken window story and the theories about "pipe priming" and "stimulatory" spending by governments, even at the cost of huge borrowing -- which is exactly what is dragging the world into a depression at this time.

The fact that Ron Paul is the only major candidate who sees this clearly is... very bad. Hopefully his success is a sign that the public is beginning to suspect that the boyz and girls in Washington are self serving and clueless.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News