Tuesday, January 6, 2009

Interesting Reading

Here's the quote of the day, via an article by Frank Shostak on Mises.org.

"If it were possible to lift real economic growth by means of money pumping, world poverty would have been eradicated a long time ago. Real economic growth requires real savings to fund various activities that support and promote it. (Remember that money is just a medium of exchange and cannot grow anything. Money is employed to exchange goods of one wealth generator for the goods of another wealth generator.)"

When we think about that literally, it makes many of these questions we've been asking pretty clear. Can the government spend its way out of this recession? Can wealth be created by artificial inflated values? Is the cure for too much cheap money more cheap money? Should we trust those who oversaw this problem to orchestrate the so-called "recovery package"?

I think we can adamantly say no.

The full article via Mises.org.

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