The power of III

Summum ius summa iniuria--More law, less justice

21 April 2011

Austrian economic principles lauded in Canada's Financial Post

The Financial Post is Canada's equivalent to the Wall Street Journal, so this editorial has weight in the non-Wingnut community (emphasis added):

"...Free markets are based on risk and will always be prone to particular failure. Only government attempts to prevent or compensate for particular failure can threaten the systemic variety.
Post-crisis stimulus stimulated little but insupportable government debt — and now inflation. It was joined by a downward manipulation of interest rates that has promoted what Austrian economists called “mal-investment,” plus asset inflation.
The astonishing aspect of all this — as pointed out numerous times in this space — is that spend-yourself-rich Keynesianism had already been comprehensively refuted in theory and had spectacularly failed in practice by the late 1970s.
The good news is that fettered capitalism has made the world a good deal richer since then, and thus arguably more able to withstand policy incompetence. The bad news that the tax-and-spend interventionist state has grown in parasitical lockstep, if not even faster, thus both hobbling progress and mortgaging people’s future via increasingly unsustainable health and welfare commitments. Few would dare to question the validity of a welfare state; but few could deny that it consistently threatens to grow out of control.
The Obama administration’s solution is more of the same..."

Please read the whole article here.

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