U.S. CitiesCity-Data Forum Index
Happy Easter!
Go Back   City-Data Forum > General Forums > Politics and Other Controversies
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Unread 12-22-2011, 01:10 PM
 
4,249 posts, read 2,622,494 times
Reputation: 1462
Default Even Milton Friedman Talks on How Ridiculous Austrian Economics is

Milton Friedman is all for the free market. However, even Austrian economics is made a mockery by a true libertarian.

Quote:
EPSTEIN You were acquainted with the Austrian economist Friedrich Hayek and also are familiar with the work of Ludwig von Mises and his American disciple, Murray Rothbard. When you were talking about bad investments, you were alluding to Austrian business-cycle theory. A certain concept that has pretty much gone into our parlance and understanding fits in with what you said about what happened in Asia. There can be times and conditions in which the stage can be set for malinvestment that leads to recession.
FRIEDMAN That is a very general statement that has very little content. I think the Austrian business-cycle theory has done the world a great deal of harm. If you go back to the 1930s, which is a key point, here you had the Austrians sitting in London, Hayek and Lionel Robbins, and saying you just have to let the bottom drop out of the world. Youíve just got to let it cure itself. You canít do anything about it. You will only make it worse. You have Rothbard saying it was a great mistake not to let the whole banking system collapse. I think by encouraging that kind of do-nothing policy both in Britain and in the United States, they did harm.
Economist's View: Milton Friedman: "I Think the Austrian Business-Cycle Theory Has Done the World a Great Deal of Harm"
Reply With Quote Quick reply to this message

 
Unread 12-22-2011, 02:59 PM
 
Location: Brighton, U.K.
2,607 posts, read 1,557,472 times
Reputation: 1273
Never mind that it has he most accurate track record of prediction, hey? Friedman is just defending his bad policy decisions.
Reply With Quote Quick reply to this message
 
Unread 12-22-2011, 04:16 PM
 
Location: Texas
5,146 posts, read 3,316,611 times
Reputation: 2455
Quote:
Originally Posted by archineer View Post
Never mind that it has he most accurate track record of prediction, hey?
Bawahhhaaa!!!! Now there's a fallacy if I ever heard one.
Reply With Quote Quick reply to this message
 
Unread 12-22-2011, 04:57 PM
Status: "Abstaining from arguing with the right for Lent" (set 26 days ago)
 
30,767 posts, read 15,316,896 times
Reputation: 13365
Quote:
Originally Posted by archineer View Post
Friedman is just defending his bad policy decisions.
What "policy decisions" would those be?
Reply With Quote Quick reply to this message
 
Unread 12-22-2011, 05:00 PM
 
3,210 posts, read 1,677,562 times
Reputation: 1012
What is happening in this thread? Austria?
Reply With Quote Quick reply to this message
 
Unread 12-22-2011, 05:06 PM
 
Location: Columbus
4,879 posts, read 1,874,456 times
Reputation: 1419
Quote:
Originally Posted by knowledgeiskey View Post
Milton Friedman is all for the free market. However, even Austrian economics is made a mockery by a true libertarian.



Economist's View: Milton Friedman: "I Think the Austrian Business-Cycle Theory Has Done the World a Great Deal of Harm"
By doing something (see the Hoover and FDR Administrations) the United States suffered through her longest and worst economic period. From 1929 to 1946.

But, yeah, it made sesne to do something.
Reply With Quote Quick reply to this message
 
Unread 12-22-2011, 08:12 PM
 
16,425 posts, read 4,004,944 times
Reputation: 3581
I think by encouraging that kind of do-nothing policy both in Britain and in the United States, they did harm.

But we didn't "do nothing", did we. There has never been a time where we did nothing. Government has always intervened and with disastrous consequences.
Reply With Quote Quick reply to this message
 
Unread 12-22-2011, 08:18 PM
 
3,210 posts, read 1,677,562 times
Reputation: 1012
In 7 years Europe in going to look like Brazil and Argentina in the 1980s. There are going to be at least four different currencies in France by 2020. Europe is doing something, which is delaying the inevitable. The inevitable will happen soon.

There is only so much good faith in the world. It is at an end.

America will utimately benefit from the bad things that are about to happen around the world much like it did when the world was in communist bondage. Beachfront property in Spain and Italy will be a bargain in the near future.


Quote:
Originally Posted by Roadking2003 View Post
I think by encouraging that kind of do-nothing policy both in Britain and in the United States, they did harm.

But we didn't "do nothing", did we. There has never been a time where we did nothing. Government has always intervened and with disastrous consequences.
Reply With Quote Quick reply to this message
 
Unread 12-22-2011, 08:21 PM
 
29,991 posts, read 17,444,502 times
Reputation: 12265

On Milton Friedman | by Murray N. Rothbard - YouTube
Reply With Quote Quick reply to this message
 
Unread 12-23-2011, 12:22 AM
 
Location: Ohio
9,575 posts, read 4,884,237 times
Reputation: 5515
Quote:
Originally Posted by knowledgeiskey View Post
Milton Friedman is all for the free market. However, even Austrian economics is made a mockery by a true libertarian.

Quote:
I think by encouraging that kind of do-nothing policy both in Britain and in the United States, they did harm.
One of the major criticisms of the Federal Reserve during the period 1928-1930, is that it did not act quickly enough to prop up failing banks.

I agree to a point, because had they acted quicker, it would not have prevented the Great Depression (the largest tax hike in US History levied by the Republican-controlled House and Senate, plus the tariff increases did that), but it would have lessened the severity somewhat.

Having said that, I would also be quick to point out that the banking system then is nothing like the banking system now.

So it would be a mistake to attempt to compare the two, since they are dissimilar.

I would also point out that bank failures then did not have the same direct cause as bank failures, bank insolvencies, and "in-trouble" banks now.

Bank failures during 1928-1932 (and beyond) were caused almost entirely by depositors withdrawing money for fear they would lose it, and that was a very real fear given that some banks collapsed and depositors lost all of their savings and funds (that was before the creation of the FDIC to guarantee deposits). In nearly all cases, we're talking about one bank, not one bank with 3,981 branches in 42 States.

Many banks were solvent and financially strong, but collapsed anyway after depositor runs. I should probably point out that mega-banks did not exist then either. The financial institutions that collapsed were your local bank, Savings & Loan or Buildings & Loan. Some of them actually had one or two branches, but not 5,300 branches in 38 States.

As far as the current situation, it might be a good idea to let those banks fail, or at least take them over. Letting the system collapse (and changing legislation/regulations) would force it back to the pre-Carter days (before Carter started messing with the banking system).
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $74,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Politics and Other Controversies
Similar Threads

All times are GMT -6. The time now is 02:27 AM.

© 2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top