Political Hypertrophy Produces Economic Anemia

The current economic crisis, brought about initially by the mortgage fiasco caused by government policies, programs, laws, and mandates, is severely testing this nation’s supposed basic devotion to maintaining a free-market economy, as the ideal for economic activities. 

Destructive Economic Attitudes

But, shockingly, most people, not knowing the true and intense failure of government in this matter, demand that the State take major action to save them, to save the economy.   This is as if more of the same poison is needed to stop the effect of the previous dosage of poison; the logic is absurd but demonstrates how politics can defeat right reason when enough propaganda exists to prevent access to truth.   The absurd, attempted “stimulus” to the economy can predictably have a mostly depressive result, since it will largely misdirect many economic resources from the private or productive sector to the public sector.

But, as is well known to the Austrian School of Economics (ASE), the unfortunate appeal to government and its troublesome power will have many long-term costs and unfortunate consequences pertaining ultimately to the survival of human liberty and, by the way, economic prosperity.   Empowerment of the State does not translate necessarily into the supposed or expected betterment of the economic conditions for the people of a country deemed to be a republic, who then become mere ersatz subjects, as they cease to be fully free citizens.