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Question the received wisdom of left wing politicians and economics academics that the only way out of the financial mess is higher taxes and more government spending and they will get on their high horse to explain that you are only revealing your economic ignorance - and like comedy cowboys fall right off on the other side.
Originaltitel
Micawbernomics: A Christmas Gift Of Wise Advice To Politicians And Economists
Question the received wisdom of left wing politicians and economics academics that the only way out of the financial mess is higher taxes and more government spending and they will get on their high horse to explain that you are only revealing your economic ignorance - and like comedy cowboys fall right off on the other side.
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Question the received wisdom of left wing politicians and economics academics that the only way out of the financial mess is higher taxes and more government spending and they will get on their high horse to explain that you are only revealing your economic ignorance - and like comedy cowboys fall right off on the other side.
Copyright:
Attribution Non-Commercial (BY-NC)
Verfügbare Formate
Als PDF, TXT herunterladen oder online auf Scribd lesen
A Dickensian Christmas Gift: Mister Micawber's Economic Wisdom
Annual income twenty pounds, annual expenditure nineteen pounds ninety
five, result happiness. Annual income twenty pounds, annual expenditure Twenty pounds and five pennies, result Misery. (Wilkins Micawer!s advice to "avid in #harles "ickens! "avid #opperfield. 19 th Century engraving$
Charles Dickens invented Christmas as any fule kno and therefore is is sensible to look to Dickens for advice on how to get out of the economic mess that has put a damper on the festive spirit. But why do we need a Christmas economics lesson from a fictional character created 150 years ago to why the economy is in a mess and why we can't seem to get out !overnment ministers" central bankers and academic economists everywhere in the developed world are intent on telling us that the way out of the present crisis is to raise ta#es so government can spend more. $eynesianism they call it though %ohn &aynard $eynes would be spinning in his grave if he knew how his economic thinking was being wilfully misinterpreted by &ar#ists and collectivists. 'nd yet politicians of the left and centre" the unelected bureaucrats of the united nations" imf and european union and those left wing media commentators who delusionally regard themselves as part of the (intelligentsia( mindlessly chant the (more government spending( mantra which goes )higher ta#es" higher ta#es" ta#es ta#es" higher higher"* +appy polly loggies to !eorge ,arrison and the ,are $rishna -emple. -he more independent minded and therefore less indoctrinated among you might think that e#cessive government spending was what got us into this mess but" as plenty of half/educated shit/for/brains academics will happily tell you in televised discussions" lectures" articles and internet comment threads you're simply revealing your ignorance of economics. 0ot everyone agrees. '1ractical men who believe themselves to be 2uite e#empt from any intellectual influences" are usually the slaves of some defunct economist"' is a 2uotation that describes the $eynesians perfectly. 3ho said it %ohn &aynard $eynes actually. -hese 'practical men' or practical people as we should say in this era of political correctness are now pursuing a doctrine so at odds with what $eynes actually advised" so counter/intuitive" lacking in common sense" at odds with the evidence of the past five years and of economic history generally" that it's only their office" and the theatrical gravitas they have perfected" that sets them apart from the grotes2ue" baggy trousered clowns who are scaring children witless in Circus shows at this time of year. -o anyone approaching our present discontents without preconceptions" it is the '$eynesians' who are the doctrinaire e#tremists" clinging to their creed that holds printing money and profligate government spending will lead us to collectivist utopia long after the 4005 crash blasted away whatever shreds of credibility such looonytoons thinking might one have had. 3hat $eynes actually said was that governments should spend their way out of recession and fund that spending from a cash reserve built up in times of prosperity. !overnment spending and the spending of businesses should never e2ual income but should always be comfortably within income" and in the case of governments that income should always be the lightest burden upon the 0ation that it is possible to achieve. 't the moment businesses aren't hoarding cash" they are closing. 3hen you have accelerating margin compression +an economic term" input prices are rising" overheads are rising" but retail prices are higher than the customer is prepared to pay or able to pay." increasing overheads and reduced sales which can only be made at discounted prices" these consume profit margins until the point is reached where businesses logically have to close the doors to prevent further losses" or things go too far and they are forced into bankruptcy. 'ccelerating margin compression is the stage 6ust prior to a deflationary collapse +refusing to allow the &arket to function with its normal trending towards mild deflation" stores it up so it arrives all at once" with a considerable additional penalty for being so insane as to engineer conditions so that it must happen that way.. 3e are over forty years past the stage where a deflationary ad6ustment could have worked. 1revention isn't necessarily better than cure" because in this case" prevention of healthy cycles working as they should" can guarantee death. -he left traditionally call for regulation and blame 'markets' for the economic woes that inevitably result from their policies. But markets do not cause inflation" printing money or 2uantitative easing to give it the obfuscatory name academics and politicians prefer" is the cause of rising prices. 7 know 7'm wasting my time because the left are economically illiterate and everyone else is capable of thinking it through for themselves" but here" in very simple terms" is why 2uantitative easing will destroy your savings" erode the buying power of what you earn and eventually bleed you dry. 7magine there are 5"000 units of production" and 5"000 units of currency" then the ma#imum price per unit of production is one unit of currency. 7ntroduce another 5"000 units of currency" or 5"000 units of unsecured credit" for the same 5"000 units of production" and the available ma#imum price per unit of production" becomes two units of currency. 7nflation +by 2uantitative easing. is deliberate debasement of the currency" and is very much a stealth ta#" counterfeiting money by oversupply due to printing banknotes or making available credit +while credit is not 'currency' it is 'fungible' with real money i.e. it can be used as a soft substitute for hard currency.. 7nflation is also a punitive ta# that seriously affects all" and hits the very weakest hardest +so much for all those political promises to 'protect the poor'." as well as penalising the most responsible members of 8ociety. 7nflation loots" pillages" and asset strips" the entire 0ation. 7t is worth mentioning here" that the &arket always tends to mild deflation +sic. due to competition" improved efficiencies" etc. -hat markets are not trending to mild deflation and haven't for several decades illustrates the degree of &arket manipulation and currency counterfeiting that has been going on" and which continues to go on. 3hen demand falls off a cliff" commodity and retail prices don't tend to go up" which is what they have been doing very rapidly since 4001. 9conomic socialists +a.k.a. Communists" collectivists or kleptocrats. argue that socialist measures have failed wherever they have been tried only because those governments were not socialist enough. &ore confiscatory ta#ation" more suppression of individual freedom and more centralised control by a totalitarian government would have paved the way to a successful socialist society. $arl &ar# wrote that in the perfect socialist state private property would be abolished and the individual would seek to e#ist and all humans would become components of the state. 7f the received wisdom in the economic community and the political left is looked at in the conte#t of the approach to 3orld 3ar 4 it would look as if the British government had responded to ,itler's invasion of 1oland by arguing that 'ppeasement hadn't been tried properly" and that we needed more of it. &ister &icawber's advice states the case for 'ustrian economics in simple terms. 1erhaps you have to be an economist or a politician not to see the logic in it but clearly common sense is something those clever minds simply cannot understand. 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