David M. Brown's Blog

August 3, 2011

TNR says economic bloodletting must be accelerated

Filed under: Economics,Media and journalism,News,Politics — davidmbrowndotcom @ 12:29 am

TNR.com won’t let non-subscribers to The New Republic post comments. For example, on a nugget about what “every mainstream economist now believes we should do: increase consumer demand by pumping more money into the economy.” Mainstream=Keynesian? Mainsteam=completely ignorant of market processes and the means of capital accumulation and achievement of wealth?

Wealth transfer from productive to unproductive doesn’t create wealth. Neither does pumping paper or credit into the economy, as our most recent economic slump should have reminded us. Such politically motivated manipulations just spawn rampant malinvestments.

But lefty economists and New Republic writers are like medieval bloodletters. They bleed the patient, the patient dies, and they conclude: “If only we had drained even more of the blood!” Next time, they’ll chop the guy’s head off and say the cure didn’t work because the axe wasn’t sharp enough. Poisoning, hanging, shoving over the edge of a cliff–none of that kind of thing is really going to revive anybody.

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