Originally Posted by
MultiVerse
Meh, arguing with internet Austrians is a waste of time. I studied economics, undergrad engineering grad school econ, and referencing mises.org is a clown show. I have read about the recession of 1920 even though it was mostly a non-event (at the time everything was called a depression before the Great Depression). In fact, Hoover's policies were based on the 1920 event but it didn't work. I could explain why but I doubt anyone cares.
Internet Austrian's who reference mises don't know what they don't know, and they really don't understand the Austrian viewpoint when it comes to the Fed. I could explain prices, NGDP, M1, M2, etc. but it's pointless because you don't have the background to understand it, it involves math, and I'm not interested in arguing.
Besides, there's literature on pandemics so when I write the risk of "economic collapse the results of which can persist for decades," it's not just some offhand comment.
For anyone else, this whole thing started with Ron's idea that we should just let business fail because they failed to plan for a pandemic. The problem with that idea is people are valuable and not interchangeable so you needlessly destroy a lot human capital, and wiping out equity capital ignores how important the capitalization of large enterprises really is.
Wipe out Boeing, for example, and there's a good chance America stops making large commercial aircraft. Wipe out banks and then you have to figure out how to recapitalize the economy. The century old plan of "let all the equity be destroyed" slows down the rate at which you recapitalize—which gets back to the risk of decades long recovery.
People might not like the Fed, or Banks, or even Boeing but that's just an attitude not dispassionate analysis. There's a world of difference between improving those institutions and letting them be destroyed.