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Source link: http://archive.mises.org/14333/dowd-sums-it-up/

Dowd Sums it up

October 22, 2010 by

From IEA

At this point, the financiers have the politicians in their pocket. No wonder they are openly bragging that happy days are here again (whilst adding insult to injury by telling us that this is God’s work!), even as banks are still on life support, courtesy of the taxpayers who are being robbed blind; meanwhile, the politicians they elect to represent their interests do not so much as stand idly by but actively collude in the robbery.

{ 3 comments }

Ohhh Henry October 22, 2010 at 9:58 am
CK October 22, 2010 at 3:26 pm

If you’ve ever read the period in English history that prompted Cato’s Letters, the current period in American history is much like it. Central banking, bubbles, and destruction of the commoners’ wealth.

S. J. Bentsen October 24, 2010 at 7:30 am

I wonder if the definition of Capitalism couldn’t be made so simple so as to need no further categorization than Capitalism or not Capitalism. Böhm Bawerk in his 1914 article “Macht oder ökonomisches Gesetz,” suggested that the law of demand and supply were in effect everywhere, however much coercion was applied in attempts to put it out of force.

Though the law is widely accepted to hold true for ordinary store goods, it is hardly so at all for labour and money. Böhm Bawerk made an effort to demonstrate that this law held true for labour as a good as well, and this could imaginably be done as regards loans too. (I have not yet read any text where the problem of stock not clearing, or not sufficing to satisfy demand, has been applied to the money market in a way where the parallel is obvious, though it might well exist, I’m a pure amateur.)

If everything that was lent through banks represented deferred consumption of claims to this through wealth building, in short, if loans were closer in character to other goods, what would this do to the by Professor Dowd lamented dominance of the financial sector? Were not businesses to a much greater degree self financed before credit became as easily obtained as today, for example?

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