Showing posts with label recession. Show all posts
Showing posts with label recession. Show all posts
Wednesday, June 2, 2010
Saturday, December 12, 2009
Sunday, August 17, 2008
Why the "bad" economic news is good
by Llewellyn H. Rockwell
Sometimes the bad news is the good news. So it is with the report that retail sales are down by 0.1 percent in July, the sharpest drop in many months.
Why good news? It means that consumers are starting to cut back. They could be going into less debt. They might be saving more. They are being more careful about long-term plans pending short-term trends.
These are all preconditions for recovery. It’s only bad news if one adopts the crude theory that economies are sustained by consumer spending. The truth is nearly the opposite. Consumer spending is the final payoff for the less visible foundation of growth, which is real saving and investment – that is, making the choice for the future over the present. What declines in retail spending indicate is a coming to terms with reality.
For more on this commentary, go to LewRockwell.com
Sometimes the bad news is the good news. So it is with the report that retail sales are down by 0.1 percent in July, the sharpest drop in many months.
Why good news? It means that consumers are starting to cut back. They could be going into less debt. They might be saving more. They are being more careful about long-term plans pending short-term trends.
These are all preconditions for recovery. It’s only bad news if one adopts the crude theory that economies are sustained by consumer spending. The truth is nearly the opposite. Consumer spending is the final payoff for the less visible foundation of growth, which is real saving and investment – that is, making the choice for the future over the present. What declines in retail spending indicate is a coming to terms with reality.
For more on this commentary, go to LewRockwell.com
Sunday, June 1, 2008
Why recessions are important
by Llewellyn H. Rockwell Jr.
We all want to live well and no one wants their living standard to decline. That makes sense, right? It's just the way we are made.
What does not make any sense is the strange article of faith that has descended over Washington, DC, that says that no prices must ever be permitted to decline due to recessionary pressures. All resources in the national treasury, every conceivable monetary manipulation, all efforts of every regulatory body must be marshaled toward the great national goal of re-pumping the economy, which must never ever be permitted to fall even a tiny bit
Welcome to the War on Recession, which is being pursued with the same vehemence and folly as the War on Terror, and will likely prove just as spectacularly destructive of its own aims as well as liberty itself. Maybe we need songs, banners, and little ribbon pins and car magnets too.
For more on this commentary, go to LewRockwell.com
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