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Source link: http://archive.mises.org/10319/cnbc-hates-saving/

CNBC Hates Saving

July 19, 2009 by

I realize it must be difficult to maintain a constant barrage of “just breaking” financial news stories, but CNBC really puts out some doozies. Take for example a recent article titled, “Higher Savings Rate Is Great, But What About the Economy?” FULL ARTICLE

{ 16 comments }

Brian Macker July 20, 2009 at 6:47 am

One thing. We were living beyond our means in the Clinton administration also. Pretty much the entire Greenspan term. We just didn’t know it because Greenspan was holding interest rates below market.

Jeff July 20, 2009 at 9:59 am

Here’s something. I did a very quick regression of the change in the unemployment rate against the change in the elements of GDP. I realize this is a very crude one-shot, but it yields an interesting result. Only changes in investment yielded changes in the unemployment rate. Consumption is irrelevant. Mostly because peoples’ consumption varies so little. Oh, and G and NX don’t seem to be relevant either.

A. Viirlaid July 20, 2009 at 12:38 pm

Great article. Had to laugh.

“Paradox of Thrift”?

We should likewise try to explain another unexplainable.

How do otherwise such intelligent people (Obama, Krugman, Geithner, Bernanke) all become so dumb when they go to work on solving the ‘problem’ of an economy that refuses to submit to their will?

Maybe that syndrome can be called “The Paradox of Keynesian Stupefaction”.

To their overwhelming amazement, the economy stumbles, reverses course, refuses to be ‘stimulated’, and generally lays down in a fit of lethargy.

The recommendation of our learned economic leaders?

More ‘stimulation’!!!

Brian Gladish July 20, 2009 at 12:50 pm

Does anyone have e-mail addresses of CNBC reporters? Michelle Caruso-Cabrera seems to be very much oriented to free markets (big Milton Friedman fan) and might be the most easily turned to Austrian views. If anyone knows her e-mail address, send her a link to this article!

2nd Amendment July 20, 2009 at 1:04 pm

Thrift is a “paradox” only in highly taxed and regulated socialist countries like the USA, Canada, France etc.

Under free market capitalism, thrift is no paradox and garantees future prosperity and economic growth.

EnEM July 20, 2009 at 1:25 pm

CNBC does not operate on logic. The news presenters, er.. talking heads, are more concerned with making sure they have perfect hair and teeth before going on the air. And here we are, the mindful ones, hoping they would analyze the Keneysian equation AND disgagree with the results!

Watching that channel is a complete waste of time.

EnEm July 20, 2009 at 1:28 pm

Sorry…..I meant *Keynesian* equation

Tim Kern July 20, 2009 at 1:29 pm

Mr. Murphy, please don’t get sloppy and go down the “Ann Coulter Chute of Ratings and Rantings!”

Statements like “The federal government kills people to get its way all the time,” beg for citation. Most of us remember Waco and (former CIA Director) William Colby; these would probably suffice. If not, you could add some citations of killings that weren’t Janet Reno’s work.

When you say, “It’s understandable that the politicians would get up there and propose that we lend them a few trillion dollars to hand out to their friends,” you’re soft-soaping. They “proposed” nothing, and the very concept of “loan” is bogus — we’re not “loaning” anything to “them” — They aren’t responsible for paying it back!

matskralc July 20, 2009 at 1:36 pm

Statements like “The federal government kills people to get its way all the time,” beg for citation. Most of us remember Waco and (former CIA Director) William Colby; these would probably suffice. If not, you could add some citations of killings that weren’t Janet Reno’s work.

About our current Middle Eastern adventure?

JB1122 July 20, 2009 at 3:36 pm

Paradox of Thrift…

The only true paradox is the idea of a paradox. We all live in a continuous world – where the seeming existence of a paradox outside of itself is only the result of a misinterpretation of the system under investigation.

Mathematically, wouldn’t it be like denying the existence of a gradient?

Great article by the way.

JB1122 July 20, 2009 at 3:38 pm

Paradox of Thrift…

The only true paradox is the idea of a paradox. We all live in a continuous world – where the seeming existence of a paradox outside of itself is only the result of a misinterpretation of the system under investigation.

Mathematically, wouldn’t it be like denying the existence of a gradient?

Great article by the way.

JB1122 July 20, 2009 at 3:45 pm

Paradox of Thrift…

The only true paradox is the idea of a paradox. We all live in a continuous world – where the seeming existence of a paradox outside of itself is only the result of a misinterpretation of the system under investigation.

Mathematically, wouldn’t it be like denying the existence of a gradient?

Great article by the way.

KP July 20, 2009 at 4:45 pm

“How do otherwise such intelligent people (Obama, Krugman, Geithner, Bernanke) all become so dumb when they go to work on solving the ‘problem’ of an economy that refuses to submit to their will?

Maybe that syndrome can be called “The Paradox of Keynesian Stupefaction”.”
————————-
Fayek called it the fatal conceit. I like yours better.

Nelson July 20, 2009 at 5:42 pm

I believe this topic came up last year. I seem to remember a definition discrepancy between how the Austrian school defines savings and the definition used in “the savings rate.” Am I remembering wrong?

JB1122 July 20, 2009 at 6:02 pm

Many apoligies for the multiple posts.

Capital Bonds March 15, 2011 at 4:02 pm

Capital bonds are investments which guarantee the investor a fixed rate of return after a period of approximately five years.
Capital Bonds

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