David Stockman Blog | Recessions: Market Cures And Central Banking Sugar Pills | Talkmarkets
Editor, David Stockman's Contra Corner
Contributor's Links: David Stockman's Contra Corner

David A. Stockman is the ultimate Washington insider turned iconoclast. He began his career in Washington as a young man and quickly rose through the ranks of the Republican Party to become the Director of the Office of Management and Budget under President ... more

Recessions: Market Cures And Central Banking Sugar Pills

Date: Sunday, September 15, 2019 7:01 PM EDT

What Austrian-school economics identifies here, however, is that the above recessions tend to be amplified and exacerbated by government attempts to help. Stimulus efforts tend to be counter-productive since governments naturally attempt to prop up existing businesses and existing sectors. What this inevitably does is choke off the entrepreneur from the necessary land, labor and capital to form a more valuable business is tied up in a government-subsidized Zombie Company. It’s in the attempt to avoid the inevitable recession where the problem is lengthened.

Disclaimer: This and other personal blog posts are not reviewed, monitored or endorsed by TalkMarkets. The content is solely the view of the author and TalkMarkets is not responsible for the content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.