Tag Archives: recession

Why the State Shouldn’t Manage a Crisis


Why the State Shouldn’t Manage a Crisis

By Duncan Whitmore

Many libertarians, especially at lewrockwell.com, have written of their scepticism to the draconian responses of states around the world to the recent outbreak of coronavirus (COVID-19). It is not difficult to share this scepticism given that at least some analyses – particularly of infections on cruise ships, which, given the unavoidably close social proximity, present the closest thing to a worst case scenario – suggest there is little cause for any heightened alarm. Indeed, for the very vast majority of us, there is probably more to be feared from state overreaction than there is from the virus itself. Even mainstream commentators, such as Matthew Parris in Saturday’s Times, are beginning to question the wisdom of trashing your economy to prevent the spread of an infection that is, at least at the moment, affecting only a relative minority of people of advanced age and/or with underlying health conditions (in common with many other inflictions). States always have ulterior motives when dealing with (apparent) crises as they always see them as an opportunity to expand the ambit of their power over the populace, given that a scared people is nearly always willing to sacrifice its liberty for the sake of security. In fact, if the true medical seriousness of this current virus turns out to be only a hill of beans then it may well have served as a dress rehearsal that has merely tested our pliability for some later calamity.

This essay, however, will not concern whether the spread of COVID-19 is quite the crisis it is being made out to be. Instead, let us assume, for argument’s sake, that the world was to be threatened by a very real and very serious pandemic threat. Would such a disaster warrant stronger, co-ordinated, globalised solutions managed by states and enhanced state powers to deal with the problem? Read more

Economic Myths #15 – Unemployment


Economic Myths #15 – Unemployment

By Duncan Whitmore

One of the key indicators of the economic “performance” of any given country is its rate of unemployment. Low rates of unemployment are understood as a sign of prosperity while high rates are taken as a sign of recession and stagnation. Indeed, during the Great Depression, unemployment reached as high as 25% in the United States.

Politicians are particularly keen to monitor the rate of unemployment as low unemployment lends credence to the economic policies of those in power while high unemployment stocks the arsenal of those in the opposition. Given also that entire economic dogmas such as the so-called trade-off between full employment and inflation, not to mention the generation-long post-war Keynesian consensus are, at least, part rooted in the concept of unemployment, one would expect unemployment to be a unique and important category in economic theory.

This short essay will not explore in detail the state induced causes or aggravations of unemployment such as the minimum wage and excessive regulations heaped upon the shoulders of employers. Such topics have been examined countless times over by many economists, “Austrian” or otherwise. Rather, what we wish to concentrate on here is the validity of the very term “unemployment” itself and to determine whether it is really a useful concept in shaping so-called “economic policy” or whether it is really redundant and meaningless. Read more

Economic Myths #3 – We Need More Jobs!


During an economic malaise one of the endless reams of statistics to which pundits glue their eyes is the number of jobs that are either created or destroyed. The state makes “job creation” a central plank of its economic policy to put people back to work, and the impression that more people are being hired and fewer fired buoys their hubristic impression that we must be on the road to recovery.

In the first place, we might as well point out that, for as long as humans strive to create more wealth, there will never be a shortage of demand for productive work. Labour is the ultimate scarce commodity – however much machinery we have and whatever our state of technological progress there is no production process that does not require an input of labour (any such process which did not require labour would essentially be producing free goods). Thus, the phenomenon of involuntary unemployment is made possible only by the artificial costs and restrictions that the state places upon employers – such as minimum wages, health and safety laws, working time restrictions, taxes, compulsory national insurance contributions, etc. – which mean that employers and employees cannot work together on terms that are acceptable to them. This is on top of the distortions and upheavals of state-induced business cycles which create clusters of bankruptcies and redundancies in the first place.

That aside, however, the obsession with jobs is another example of the error of looking at an isolated aspect of economic achievement rather than at the entire picture – much like trying to boost consumption in order to further growth which we explored in myth #2. Read more

I see that Gold is quite rocky, today…


David Davis

One of my pet achievements is to have been able to paste “widgets” such as the excellent Kitco charts that you see beside you on this sidebar. Not being a tech-guy, and not knowing even the square-root-of-effing-all about something called “HTML”, or even “cascading style sheets” (search me, guv!) I gave myself a pat on the back for these being on here at all.

It is an interesting and fun exercise to watch them, even down to the hour, as they react to what the loliticians on the MSM are saying and doing. Gold seems especially rocky today, I am not sure why, but it has not really tested the heights of the last week or fortnight or so. I wonder why it’s so jumpy, and yet not stratospheric? Can anyone enlighten us?

The price of socialism, part 46,574-C/5-a : one home burgled every two minutes


…..and where is the safe haven, just askin’ – as it’s an interesting question……….

David Davis

Well well well: the powers that be have noticed that crime might rise if people are struggling to find their daily bread. But only if you are intent – as Fabianazis and Gramsco-Marxians deliberately are – on creating an anti-civilisation of bad-people, whom you think will vote for your handouts, or better – not vote at all on anything.

The answer is more guns, and knives. In our hands. if the bastards get gutted, or blown away in shreds and their remains have to be hosed off the front path, it’s their problem.

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