How to understand the "Greater Depression" in one paragraph
Thursday, November 12, 2009
Mises is always sound, but his prose usually ranges from dull to turgid.
But Mises on economics is highly topical, as the Greater Depression unfolds:
"The boom produces impoverishment. But still more disastrous are its moral ravages. It makes people despondent and dispirited. The more optimistic they were under the illusory prosperity of the boom, the greater is their despair and their feeling of frustration. The individual is always ready to ascribe his good luck to his own efficiency and to take it as a well-deserved reward for his talent, application, and probity. But reverses of fortune he always charges to other people, and most of all to the absurdity of social and political institutions. He does not blame the authorities for having fostered the boom. He reviles them for the inevitable collapse. In the opinion of the public, more inflation and more credit expansion are the only remedy against the evils which inflation and credit expansion have brought about."
-Ludwig von Mises, Human Action, 1949
If you've got any question about how bad this thing is going to get, and what its social and political consequences are likely to be, read it again.
Thursday, 12 November 2009
From Doug Casey in The Casey Report:
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