[ExI] Inflation graph

spike spike66 at att.net
Sat Nov 30 20:11:48 UTC 2013


>... On Behalf Of BillK
Subject: Re: [ExI] Inflation graph

>...I think that economics theory does have useful insights, which sometimes
apply in the real world...

Ja, BillK the real world has two competing economic schools of thought which
make opposite predictions.  Currently the Keynesians have iron-grip control
in the USA.  We will soon see Hayek's brutal revenge.

>...But I think the problem is simply that the finance industry et all, have
realised that bribery, corruption, fraud and theft are far more profitable
than following some economic theory...

Hmmm, it isn't so much that it is more profitable than some economic theory.
Bribery, corruption and fraud are part of some economic theory: Hayek
assumes these things as part of the model.

>... As more and more money accumulated, with little downside from the law
and regulators, the problem grew larger and larger.  Market theory and
economic theory fail in corrupt markets.  BillK
_______________________________________________

Keynesian theory fails in that environment.  Hayek theory assumes
corruption; it correctly predicts that corruption grows with wealth and
power.  As government and industry become more corrupt, Hayek's theory works
ever better, as Keynesian theory crumbles.

I am optimistic however: the internet empowers individuals.  It brings power
down from central authority, which reduces overall corruption.  The current
23andMe situation is a perfect example: that company delivers a product for
a reasonable price.  The central authorities don't like it.  They want us to
buy their absurdly overpriced product, the one over which they have
monopolistic totalitarian control.

spike




More information about the extropy-chat mailing list