why on earth do you say people like Milton Friedman are not capitalists when the whole world recognizes them as such???
yes in a world wide economy with millions of suppliers adjusting to demand on a moment to moment basis there are no significant supply demand mismatches that could cause a recession. It would only happen through govt interference. Do you understand now?
??? thats 1930's Austrian rhetoric; silly now. Now issue is what should Fed target be: 0% 1% 2% 3% growth. Do you understand? nobody at Fed or ECB wants dishonest price discovery or inflation. You're fighting a battle from 100 years ago. You should modernize your education.
absurd of course. a small business in Utah does not need to be purged when Wall Street goes haywire thanks to govt misregulation. Modern economics is about protecting capitalism from central govt screw ups. Now do you understand?
I didn't say anything about Milton Friedman. I said that you aren't a true capitalist because you want lib-commie control over the financial industry.
Modern capitalism protected government and the banks, while letting the little guy get purged. That's why what you praise is not capitalism at all. It is collectivistic corporatism. Why you defend and praise it is beyond me
what??? many banks went bankrupt! thats protection??? A depression was avoided which would have needlessly bankrupted millions of small businesses. Do you understand now?
not letting the banking depression spread to bankrupt 20 million capitalist small business is simple common sense and preserving capitalism
would you say Friedman was not a capitalist because he thought on balance there was more capitalism with a Fed than without?
Preserving capitalism by collectivising losses and capitalising the insolvent. Now there's a mouthful. Sometimes I almost think you actually understand what capitalism is, ....almost
what losses were collectivised? Govt forced banks to take loans- which were repaid- to prevent depression that would have needlessly bankrupted millions of small capitalist businesses. Even so many of the major banks went bankrupt.
so?????????? and owners of bankrupt banks are not smiling while millions of small businesses that were saved from depression and bankruptcy are smiling. Time for you to rethink your simplistic narrative.
he advocated central bank with zero inflation/deflation as best way to help millions of capitalist businesses thrive.
But what you need to also understand is that current interest rates are set based on anticipated inflation/deflation rates in the future. So, in one sense, preventing deflation now is probably going to lead to higher interest rates in the future, since everyone will expect average inflation rates to be higher. This is very similar to the reason why inflation is so problematic if government is trying to use inflation to lighten its debt. You can use some inflation, but when it comes time for that debt to be periodically serviced, it will just force up interest rates in accordance with the expected rate of inflation.
socialism is where govt owns major industries, not where it manages monetary policy to preserve millions of capitalist businesses. Its 100% absurd to say a guy who owns a small business in Peoria is not a capitalist because govt prevents his life savings from disappearing due to Washington policies 2000 miles away.
But it was important for him to understand it because he claimed deflation would make it hard for businesses to pay off their loans. Obviously this wouldn't be true if they had anticipated the likely possibility of deflation, just like inflation wouldn't make it easier to pay off loans if everyone had already anticipated that level of likely inflation.