runningbitcorn on Nostr: Greetings from Argentina, you freedom-loving Nostriches. Ludwig von Mises on why ...
Greetings from Argentina, you freedom-loving Nostriches.
Ludwig von Mises on why Argentina needs austerity to overcome the previous administration's crippling inflation:
“Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it abolishes on the one hand as many jobs as it creates on the other. If government spending is financed by borrowing from the commercial banks, it means credit expansion and inflation. If in the course of such an inflation the rise in commodity prices exceeds the rise in nominal wage rates, unemployment will drop. But what makes unemployment shrink is precisely the fact that real wage rates are falling.”
Ludwig von Mises on why Argentina needs austerity to overcome the previous administration's crippling inflation:
“Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it abolishes on the one hand as many jobs as it creates on the other. If government spending is financed by borrowing from the commercial banks, it means credit expansion and inflation. If in the course of such an inflation the rise in commodity prices exceeds the rise in nominal wage rates, unemployment will drop. But what makes unemployment shrink is precisely the fact that real wage rates are falling.”