Tuesday, October 14, 2008

From the LRC blog
  • It all went wrong when we left the gold standard. Meet Ludwig von Mises. The present problems in the economies of the West have not been caused by laissez-faire, but by the opposite: politically sensitive central bankers so desperate to prevent any stock market slump that they cut interest rates to a level which turbo-charged the debt markets. So when George Osborne, as he did yesterday, declares that “laissez-faire is dead”, the Mises-ites — one of whom is the libertarian Presidential candidate, Congressman Ron Paul — would protest that such a policy was never tried in the first place.
  • Make-believe money and stocks go up and down but an ounce of gold still buys what it did in 1914. If government had stayed the same size as it was in 1914, does anyone doubt that the carpenter would be much better off today?

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