NO NO NO
All Liberals are after free trade
I doubt very seriously that Ron will back away from the free trade policies currently on the books.
The Austrian theory of the business cycle (or "ABCT") varies significantly from mainstream theories. In contrast to most mainstream theories on business cycles, Austrian economists focus on the credit cycle as the primary cause of most business cycles. Austrian economists assert that inherently damaging and ineffective central bank policies are the predominant cause of most business cycles, as they tend to set artificial interest rates too low for too long, resulting in excessive credit creation, speculative "bubbles" and artificially low savings.[47]
Economists such as Gordon Tullock,[48] Bryan Caplan,[49] and Nobel laureates Milton Friedman[50][51] and Paul Krugman[52] have said that they regard the theory as incorrect. The Austrian theory of the business cycle is now rarely discussed by mainstream economists, but was more actively debated in the mid-20th century.[53]
According to the Austrian business cycle theory, the business cycle unfolds in the following way: Low interest rates tend to stimulate borrowing from the banking system. This expansion of credit causes an expansion of the supply of money, through the money creation process in a fractional reserve banking system. This in turn leads to an unsustainable "credit-fuelled boom" during which the "artificially stimulated" borrowing seeks out diminishing investment opportunities. This boom results in widespread malinvestments, causing capital resources to be misallocated into areas which would not attract investment if the money supply remained stable. Austrian economists argue that a correction or "credit crunch" – commonly called a recession or bust – occurs when credit creation cannot be sustained. They claim that the money supply suddenly and sharply contracts when markets finally clear, causing resources to be reallocated back toward more efficient uses.
Friedrich Hayek was one of the few economists who gave warning of a major economic crisis before the great crash of 1929.[54][55] In February 1929, Hayek warned that a coming financial crisis was an unavoidable consequence of reckless monetary expansion.[56] Economist Steve H. Hanke identifies the 2007-2010 Global Financial Crises as the direct outcome of the Federal Reserve Bank's interest rate policies as is predicted by the Austrian business cycle theory.[57] Some analysts such as Jerry Tempelman have also argued that the predictive and explanatory power of ABCT in relation to the Global Financial Crisis has reaffirmed its status and perhaps cast into question the utility of mainstream theories and critiques.[58]
The former U.S. Federal Reserve Chairman, Alan Greenspan, speaking of the originators of the School, said in 2000, "the Austrian school have reached far into the future from when most of them practiced and have had a profound and, in my judgment, probably an irreversible effect on how most mainstream economists think in this country."[25] Nobel Laureate James M. Buchanan is sometimes considered to be a member of the Austrian School[26][27] and he stated that, "I certainly have a great deal of affinity with Austrian economics and I have no objections to being called an Austrian. Hayek and Mises might consider me an Austrian but, surely some of the others would not."[28] Republican U.S. congressman Ron Paul is a firm believer in Austrian school economics and has authored six books on the subject.[29][30] Paul's former economic adviser, Peter Schiff,[31] is an adherent of the Austrian school.[32] Jim Rogers, investor and financial commentator, also considers himself of the Austrian School of economics.[33] Chinese economist Zhang Weiyin, who is known in China for his advocacy of free market reforms, supports some Austrian theories such as the Austrian theory of the business cycle.[34] Currently, universities with a significant Austrian presence are George Mason University, Loyola University New Orleans, and Auburn University in the United States and Universidad Francisco Marroquín in Guatemala. Austrian economic ideas are also promoted by bodies such as the Mises Institute and the Foundation for Economic Education.
Two modern schools of thought are seen as being either Austrian economics, or as the direct philosophical heir of Austrian economics. These are the Free Banking and anarcho-capitalist movements. Although they have competing views of monetary policy, they share a fundamental view of most economic philosophy. Free Banking advocates tend to see themselves as coming directly from Hayek's later progress, especially his work The Denationalization of Money, while the anarcho-capitalists tend to follow the views of Rothbard and Mises.[citation needed]
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Then there is what I support what works
The American School, also known as "National System", represents three different yet related constructs in politics, policy and philosophy. It was the American policy for the 1860s to the 1940s, waxing and waning in actual degrees and details of implementation. Historian Michael Lind describes it as a coherent applied economic philosophy with logical and conceptual relationships with other economic ideas.[1]
It is the macroeconomic philosophy that dominated United States national policies from the time of the American Civil War until the mid-twentieth century[2][3][4][5][6][7] (closely related to mercantilism and prior to Keynesian economics, it can be seen as contrary to classical economics). It consisted of these three core policies:
1.protecting industry through selective high tariffs (especially 1861–1932) and some include through subsidies (especially 1932–70)
2.government investments in infrastructure creating targeted internal improvements (especially in transportation)
3.a national bank with policies that promote the growth of productive enterprises rather than speculation.[8][9][10][11]
It is a capitalist economic school based on the Hamiltonian economic program.[12] The American School of capitalism was intended to allow the United States to become economically independent and nationally self-sufficient.
Take 10 min
American School (economics) - Wikipedia, the free encyclopedia