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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (863349)	6/7/2015 8:58:34 PM
From: combjelly	Respond to of 1588540

Total bilgewater, mindmeld. If you think we weren't just printing money during the Vietnam war, well... It very predictably led to the high inflation and growth stagnation during the 1970s. What Reagan did was actually worse, borrow and spend. Printing money rather quickly leads to high inflation. It is rather noticeable that way. Borrow and spend is different. As long as people are willing to buy the bonds, it can go on until the interest paid starts to exceed the money taken in plus expenses. That takes much longer. Not sure why you see that as non-Hayekian, though. Or more precisely, why that is any different than printing money. I suppose you can argue that the US worked on Hayekian principles prior to going off the gold standard. But that wouldn't be correct, those principles were just the old 'classical model' in its various forms. And that wasn't a Hayekian model, although it did influence Hayek. Unfortunately, Hayek took the classical model and made some changes which aren't reflected in reality. As a result, it contributes to the growth of wealth concentrations even more than the classical model. And that, as Adam Smith recognized, means you no longer have free markets. Smith's mistake was believing that wealth concentrations could only occur under a monarchy. Austrian School holds that wealth concentrations only occur when government intervenes, conveniently ignoring that it happens even when the government has a strict hands off approach to the economy.