Apparently the new thing to do is assert Austrian economists believe the market is a “fragile thing.” This gem from James Pethokoukis of the American Enterprise Institute alleges that in the textbook Austrian view, “it follows that economic stability requires the regulation of markets through government intervention.”
Very odd, since many Austrian economists come to the conclusion that it is government intervention into the economy that causes problems and we would be better off free from any government control whatever. The thought that President Obama could be characterized as a neo-Austrian is amusing, to say the least.
I think all the research Pethokoukis has done into Austrian Economics is to have seen that they write about something called “business cycles.” I guess in some sense the term business cycle can be misleading if you are a dolt who doesn’t read into the theory; it would be more accurate to call the business cycles “government cycles” or “central banking cycles.” Alas, we are stuck with the term business cycle.
The cyclical fluctuations of business are not an occurrence originating in the sphere of the unhampered market, but a product of government interference with business conditions designed to lower the rate of interest below the height at which the free market would have fixed it. – Ludwig von Mises (an Austrian Economist…)