Austrian Economics, Peter Schiff, & the Bailouts
Posted by Orrin Woodward on December 15, 2008
In my opinion, economics is the least understood of the sciences. Economics affects every person that desires to provide for their families, but most people rely on government or the media for their (usually incorrect) snippets on economics. The Austrian School of economics has the most logical descriptions of what occurs in an economic transaction and aligns with my personal experiences. I believe that to learn economics properly, you must read and then apply the principles into your business endeavors. We have watched our government since the 1920’s take over our economic freedoms. With every loss of economic freedoms, political and religious freedoms are sure to be lost also. Ludwig Von Mises is my favorite author in economics, but they may be a little deep for your first economics book. Paul Pilzer wrote a book called Unlimited Wealth, Warren Brookes wrote a book called Economy in Mind, and Friedrich Von Hayek wrote his classic, The Road to Serfdom. All three of these will give a great foundation for understanding what is happening in our economy today. Ludwig Von Mises magnum opus, Human Action is the best book on economics ever written in my opinion.
If we go to our economy today, we will see major violations of economic law. The sad thing is that the government will violate economic law with its interventionist policies and then when it fails – the government blames free enterprise. This allows the government to do more interventionist policies. It is like a mad doctor who gives the patient a drug and it makes the patient worse. The doctor then states the patient is very sick and will need further drug injections. The process ends only in the death of the patient. Socialism/Communism has never worked anywhere! I hear all these poetic words on the joy of government regulations and control to stop the greedy entrepreneur, but in Cuba, North Korea, Soviet Union, etc, they only succeeded in stopping their economy. The Austrian school of economics recognizes that all economies rise and fall on the economic calculations and predictions of the entrepreneur. If you kill the entrepreneur then you kill the catalyst for the entire economy. China has transformed itself into a pseudo-free enterprise country by allowing entrepreneurial profits. The Chinese totalitarians saw the economic writing on the wall and modified their economics (in a blatant disregard of their Marxian roots) to maintain power.
Peter D. Schiff is the president of Euro Pacific Capital Inc., a brokerage firm based in Darien, Connecticut. He is a follower of the Austrian school of economics and has predicted our current crisis years in advance. Peter, by using the logical conclusions drawn from economic analysis, predicted the credit crisis, the housing devaluations and many more of the economic maladies. Here is video footage of news programs where Peter was laughed and mocked for his economic views. Notice how he stands his ground and does not give in. Like the old saying goes, “A man with the facts is not at the mercy of a man with an opinion.” I salute Peter Schiff for his economic stands against the hysteria of the crowds. We need more men and women that learn the truth of economics for themselves so we will not be led down rabbit holes by our government and media. God Bless, Orrin Woodward