One thought on “India hits US for ‘unsustainable’ consumption”
“… the world was following the “unsustainable” American consumption model which was leading to excessive demand for consumer goods and energy.”
The Austrian Economists have a different take. It’s not unsustainable consumption that leads to crashes, but rather artificial credit expansion that causes producers to misallocate resources into production that isn’t supported by consumer demand.
So, it’s not that we’re doing fine and then we consume so much that we crash the system. It’s that the wrong production processes are being stimulated and everyone thinks that’s a legitimate boom.
But since it’s an artificial boom, the crash (or more appropriately, the correction) is inevitable, and that’s actually a return to fundamentals that should not be resisted by counter-cyclical policies.
The “crashes” / corrections should be embraced because that’s what heals the economy from Keynesian / Marxist policies:
Smashing Myths and Restoring Sound Money | Thomas E. Woods, Jr.
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“… the world was following the “unsustainable” American consumption model which was leading to excessive demand for consumer goods and energy.”
The Austrian Economists have a different take. It’s not unsustainable consumption that leads to crashes, but rather artificial credit expansion that causes producers to misallocate resources into production that isn’t supported by consumer demand.
So, it’s not that we’re doing fine and then we consume so much that we crash the system. It’s that the wrong production processes are being stimulated and everyone thinks that’s a legitimate boom.
But since it’s an artificial boom, the crash (or more appropriately, the correction) is inevitable, and that’s actually a return to fundamentals that should not be resisted by counter-cyclical policies.
The “crashes” / corrections should be embraced because that’s what heals the economy from Keynesian / Marxist policies:
Smashing Myths and Restoring Sound Money | Thomas E. Woods, Jr.