Tuesday, June 28, 2011

Austrian Economics vs Mainstream Economics | Mark Thornton

The Oldest the smallest and the fastest growing economics school The Austrian economics equals meritocratic economy. People who make stuff and exchange is what matters. You can't PRINT&borrow money and just figure ''its ok'' . Keynsian Economists create booms by steering markets through government spending . paper money is not wealth, it is used to obtain it. That's exactly why the housing bubble formed. The Fed lowered interest rates, stimulating investment. However, because the necessary REAL savings did not exist in the economy to fund it, there was not a sufficient market in housing in which people were willing to buy homes. Normally, we get money by producing. The new money used to invest was created without production. You can't print production.

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