The searches on my site along the lines of “what is austrian economics“, have sky-rocketed over the past two weeks in response to my articles on those subjects. I also would, in the light of humor, recommend to you a funny satire of Keynesian Economics – with perhaps a few hints of truth to it.
After hitting the books, I’ve compiled a list of my “Top 9 Austrian Ways to Boost the US Economy” as a follow up to my last article.
1. End the Wars and Bring our Troops Home Safely
Regarding specifically Iraq, Afghanistan: the troops need to come home. War is not good for the economy. Further, you can’t fight a war on ideology with bombs and violence. You can only fight ideas with better ideas. The use of force in these unjust wars is really making our economy slow down in many ways. Indeed, it’s driving up the price of oil, ruining US foreign and trade interests in the Middle East, and putting our troops in harm’s way with no end in sight. The Austrian thinker should properly be anti-war and military imperialism.
The US involvement in foreign affairs and conflicts (such as Libya), including our hundreds of military bases in other countries, is a major expense for the US budget that is not doing anything in the way of National Defense or the “general welfare”.
2. No More Bailouts, Audit and End the Federal Reserve
This is a big one. In fact, if one thing is to be done on this list, this is it. Expansionary monetary policy and artificially low interest rates is a recipe for disaster that creates huge income gaps. It splits income distribution in favor of those with money, and completely strikes struggling small businesses in their wallets.
I’d like to commend #OccupyWallStreet for their efforts. While I am ideologically opposed to centralized planning that seems characteristic of many occupiers; however, I find it peculiar to note that the Federal Reserve has both ends of the spectrum in outrage.
Auditing the Fed will reveal all kinds of fraud and misappropriation of funds, behind the scenes deals with businesses, and general irresponsibility with our money. Providing $16 trillion in financial assistance to banks and corporations is simply not organic. Also, the Austrian-minded thinker will notice how bailouts tend historically to cause more harm than good. Ford, for instance, refused to accept the bailout and has had the highest Q3 earnings of all US car companies. It just goes to show that Keynesianism as a whole immobilizes the American economy. From this realization I hope that further action will gradually lead to dissolving the Federal Reserve system entirely.
“This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson] signs this bill, the invisible government of the monetary power will be legalized….the worst legislative crime of the ages is perpetrated by this banking and currency bill.” — Charles A. Lindbergh, Sr. , 1913
3. Healthcare Reform
Programs like Obamacare should be opt-in only, not compulsory. The SCOTUS will most-likely find the individual mandate unconstitutional. Private healthcare simply cannot compete with government driving down the price of healthcare services with taxpayer money. With the government being able to produce funds through the Fed, private industries cannot keep up.
That said, the Austrian would likely oppose Obamacare and instead suggest to move healthcare to a decentralized plan with private funding of healthcare services.
4. Limit Reach of Federal Bureaucracy
Each one of these 2000+ federal assistance programs is an attempt to aid or fix a pre-existing problem. More often than not, it is a push for economic equality for people of a particular state, sex, race, ethnicity, occupation, or community.
Each one of these government programs is an attempt to level the socio-economic playing field in some way at the expense of another majority. These all come in the form of mandates, benefits, subsidies, incentives, punishments, rewards, earmarks,…for what end? These programs harvest dependence upon the government for subsistence, and actually do more harm than good.
The goal is noble, but the size is too great. To the Austrian, the government could slowly contract-out or sell these programs to the people until they are no longer necessarily a role of the State.
5. Stop Facilitating the Drug War, Decriminalize Marijuana
Legalize it. Tax it. Buy it. Sell it. Trade it. I personally hate the stuff. I am only concerned with the use (or abuse) of drugs insofar as it harms our national security. People are fighting wars over marijuana? That’s absurd, and something’s gotta give here. Imagine if people fought wars over alcohol!
The Austrian’s priorities should lie specifically with the cost of the drug war. Such a conflict has caused increase tensions on the border and the violence has a tendency to leak over into the United States. Border states with Mexico have struggled to maintain healthy economies because of their inability to react to these tensions.
NAFTA has robbed the United States of valuable revenues that could be earned from trade with Mexico and Canada, and laws prohibiting marijuana are clearly not doing any good for the US. These savings include a new, natural stimulus to businesses across the country, as well as the costs incurred for sustaining a border war with drug cartels.
I’m in favor of legalizing drugs. According to my values system, if people want to kill themselves, they have every right to do so. Most of the harm that comes from drugs is because they are illegal. – Milton Friedman
6. Eliminate Minimum Wage Laws;
Here’s a controversial one for you. Austrian economists are in favor of removing any laws on a federal minimum wage. These laws remove the US from any possibility of job competition, and they end up limiting the scope of small and large businesses. Minimum wage, if you really think about it, restricts businesses from expansion and actually results in more unemployment as a direct hit on the economy. There is a very interesting argument to be had here, which for sake of brevity I will postpone until a later date. Until then, here’s a very nice chart.
7. Cut Government Wages/Pensions/Benefits
I’ve touched on this one briefly in previous posts, but Austrians would commend any member of government who chooses to take a pay cut and refuse congressional benefits. Congressmen are over-paid and over-appreciated, and that money could better go towards, say, school teachers.
Well, there it is in brief. What do you all think of this type of approach? Would it work?
-D
