Posted tagged ‘Mises Institute’

The Greatest Economic Myths by Jeff Deist

June 3, 2016

Jeff Deist of the Mises Institute gives a 20 minute talk about the myth that we can consume before we produce. He slams the central state for spending, and central banks for electronically printing counterfeit money. These two things promote consumption before production. Watch the whole talk. It is outstanding. The talk begins at 2:40. Below are some excerpts from the video.

Here are some excerpts:

If there is one over-riding economic myth that seems to plague us every election cycle….is the motion that society can do collectively what we can’t do individually. Namely get rich by living today at the expense of tomorrow. This is the doctrine of the political class, of central bankers, of professional economists…..and I would like to term it monetary and fiscal hedonism. It’s really hedonism masquerading as economics and technical analysis.”

“When the cumulative effects of certain bad government spending policies are for off into the future, It makes sense that voters are going to vote for them because it’s just a matter of time preference….Voters are going to support things when they don’t necessarily feel the pain themselves.”

“As recently as 15 years ago we still could have dealt with the debt. Now I’m not that the political will existed at that time. I’m saying mathematically it was still possible to cut benefits and do other things to make that debt or restructure that debt to deal with it mathematically….There is nothing that’s going to come along that’s going to make us pay off this debt in any real sense…No change is coming that’s going to have a huge spike in federal tax coffers….The world knows that we are never going to pay off this debt in any real sense.”

“The world is awash in dollars especially Asian creditors of ours. So they’re caught between a rock and a hard place. On the one hand it’s not in their short-term interest for the dollar to sink rapidly but it’s very much in their long-term interest to no longer have the dollar as the worlds reserve currency because the people behind the dollar, the U.S. congress, is completely out of control, and they know this. The debts never going to be paid. Entitlements are never going to be paid….and this is the result of the myth that we can live for today at the expense of tomorrow….This is what congress is doing this is what democracy leads to….”

“There is also a monetary element to this. I’ll call it monetary hedonism. The increase in the money created by the Fed is unprecedented in human history. We have no idea what this is going to lead to. We have never had an example like this in human history where the worlds reserve currency, not a national currency, has done this….We’ve been monetizing debt for so long that it’s beginning to feel like it could go ion forever and ever….It’s monetary hedonism…it’s kicking the can down the road and saying instead of taking the bullet today we’re going to push it off to some time into the future….Is this the new normal, because I think it’s hard to conceive of an event where the Fed would ever reverse this trend or even significantly raise interest rates.”

“The desire to build things beyond ones life time is innately human. We are hard wired as human beings to build societies….Building lasting modes of living is not possible unless people work toward a future that you will not be around to enjoy themselves….. We can see the congress and the Fed are encouraging us to do the opposite.”

“Healthy societies produce capital and consume less than they produce because capital accumulation produces the upward spiral, increases productivity, increases investment and makes the future richer and brighter. Capital accumulation is what’s made it possible for human population to rise up out of subsistence and create agricultural revolution and industrial revolution the digital revolution…..Production Precedes Consumption…We have to produce before we consume. That’s what real world scarcity means…..Society produces goods or we return to subsistence living.”

“The two most powerful forces in the modern world, central states and central banks, work tirelessly to force us into this economic hedonism….. At the root of our problem is mythology. We’ve cast aside our most human impulse to save for a rainy day and build a better tomorrow for ourselves and for future generations and we bought int the myths of politics and political money. We’ve bet them get away with this economic hedonism…..We’ve lived at the expense of our grandchildren. It’s been a great party for America but good luck electing someone who will talk about the hangover.”

Make sure you invest the time to watch the video. Below are some articles related to what Jeff Deist is talking about.

Related ArticleWhat Comes First, Production Or Consumption? at austrianaddict.com.

Related ArticleCapital Consumption, aka. Eating Or Seed Corn, at austrianaddict.com.

Related ArticleSay’s Law And The Permanent Recession, by Robert Blumen, at austrianaddict.com.

Related ArticleReal Savings vs. Counterfeit Savings, at austrianaddict.com.

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Must Reads For The Week 2/1/14

February 1, 2014
The pen is mightier than the sword...

The pen is mightier than the sword… (Photo credit: mbshane)

In Defense Of The Mises Institute, at economicpolicyjournal.com. When the New York Times is trying to fudge the truth, ( lie), about the Austrian school of economics, you know you are making progress in educating people about the economic reality of Government intervention into the economy. Keep spreading economic truth and let it work its magic.

Thanks To Capitalism All These Things Fit Into Your Pocket, at Turning Point USA. Thank you Libertarian Girl for sharing this. Look at the photo and think of the cost of all the devices you would need to replace your smart phone. The good news is Government hasn’t found a way to intervene in the technology market and screw it up. Technology changes quicker than the Government can react. Will the technology side of our hampered health care system progress farther and faster than Obamacare can drag it backward?

Video: Free Americans Exercising Their Rights, at libertypenblog.blogspot.com. This is part of the push back by Americans against the growing police state, at the federal, state and local levels.. The rattle of the rattle snake is the warning to the intruder that it is too close, the bite comes when the intruder doesn’t heed the warning. This video is the rattle of the rattle snake, lets hope Government understands these warnings so the  bite never has to happen.

Video: Fox News- NSA Is Illegal and Ineffective, at libertypenblog.blogspot.com. Judge Napolitano’s segment on this video is really good. This is just another reason why people are saying enough, you’ve gone too far.

LA Cop Punches Special Needs Girl, at getholistichealth.com, and Cop Goes Psycho Waiting For McDonald’s, Pulls A Gun On Teen In Drive Thru, at thelibertarianrepublic.com. Thank you Libertas Found for posting these short videos. If we people who have power over you can’t be trusted at the local level, why would you trust people with power at the Federal level?

Video: Get Konnected With The Kronies Action Figures, at kronies.com. Creative spoof of a commercial for krony kapitalist action figures.

76,000 Pounds Of Ribs Burn In Truck Fire, Smell Wonderful, by Tammy Bruce, at tammybruce.com. Nothing smells better than meat cooking over an open flame.

Ted Cruz ‘s Comments Edited Out Of “Face The Nation”, by Shifra, at tammybruce.com. Media bias isn’t shocking anymore, it’s just the reality we live under. But in the information age it’s less of a problem.

Government Schools Are Dinosaurs, by Chris Rossini, at economicpolicyjournal.com. The information age is the biggest threat to the brain washing monopoly Government schools have enjoyed. You don’t have to set one foot in a school or college to receive an education. The bigger point that Gary Vaynerchuk makes in this short video is how technology is going to bring about a big cultural shift that will be difficult for us to see because we are living inside of it. This shift will give power back to the individual with a corresponding decrease in the power of Government. We are living in interesting times.

Romney Care Result: It Takes More Than Two Months To See A Specialist In Boston, at economicpolicyjournal.com. When the Government tries to make something more affordable, the result is a longer wait for worse service at a higher price. Isn’t that the exact opposite of how it works in the free market?