Sorry, Arthur, but I’m sitting here sort of befuddled that someone has managed to read this critique of gentrification as a defence of Hayek’s economics.
Sorry, Arthur, but I’m sitting here sort of befuddled that someone has managed to read this…
Henry Wismayer
1

I’m very sorry my friend, but the cause of this simply cannot be laid at the feet of the Austrian School. You make the usual mistaken assumption that the policies of the U. of Chicago’s trickle down economics are the same as advocated by Hayek. Some, such as deregulation, may have been similar but nowhere has true Austrian economics been attempted. No Austrian was ever in favor of Corporatism nor manipulation of: 1)currency exchanges, 2)interest rates or 3)the pricing structure. Austrians most certainly were not in favor of ZIRP or of perpetual inflation in order to keep housing prices elevated, as has been done since 2008, rather than suffering the necessary deflationary readjustment.

I will read your link, however might I suggest that your study and throughly read up on the Austrian perspective. Much of today’s problems stem from constant governmental incursion, by way of their Central Banks and the move away from traditional sound money policy. Your country enjoyed nearly 150 years of unprecedented prosperity (imperialism excluded) with the British Pound remaining rock steady. My own country’s Dollar remained at $20.66 per ounce of gold for approximately 100 years and experienced extraordinary growth. Today all growth is solely from indebtedness. We’ve mortgaged our future to pretend we have real growth today. This was Hayek warning!

The pricing structure is key and if you hide it, obscure it, manipulate it or alter it by credit expansion you will create a bubble and that easy credit is where problem lies. Indebtedness fuels the expansion and sows the seeds of eventual destruction. We’ve experienced nothing but a inflation and a series of bubbles since Nixon abandoned the Gold Standard. Now all money is debt. When everyone is in debt, the only winners are the Bankers and their cronies; politicians, government bureaucrats, lawyers and corporatists.

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