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Absolutely. It is a matter of quantity, and it would be nice to understand how much and how fast production can increase. But since Austrians usually outright d
by nhaehnle 13y ago
Absolutely. It is a matter of quantity, and it would be nice to understand how much and how fast production can increase. But since Austrians usually outright deny the possibility that production increases at all, the path to a fruitful discussion is usually closed.
In practice, even the more ambitious types of policies that are debated do not actually increase spending that much.
- jacques_chester 13y agoRothbard-school Austrians make the same error as classical Keynsians. They freeze the structure of production, treat it as a homogenous gas, and then modify some exogenous variable. The Austrians modify money supply; the Keynsians modify the aggregate demand. It's the same error of over-simplification. Economies are not smooth curves, they are lumpy and have heterogeneous networks of heterogeneous agents.