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The Socialist Myth of Economic Bubbles

The Socialist Myth of Economic Bubbles

by Iakovos Alhadeff
The Socialist Myth of Economic Bubbles

The Socialist Myth of Economic Bubbles

by Iakovos Alhadeff

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Overview

There is a wide spread belief that asset bubbles, like housing bubbles, are the result of the free market. Socialists claim that excessive risk taking on behalf of the banks, together with a lack of regulation, or even a wave of deregulation, caused the crisis of 2008.

However this is simply socialist propaganda and it does not even have the slightest element of truth. Asset bubbles arise when the peoples’ savings are misallocated, and the reason they are misallocated is always government intervention. This essay follows the tradition of the great Austrian economists, and demonstrates in a not technical way, how government intervention leads to savings misallocation, which in turn leads to asset bubbles.

And depressions are simply the aftermath of the bubbles’ collapse. The basics of the crises’ mechanics are always the same. There are no major differences between 2008 and 1929 as this document clearly shows. This is a very simple document that does not require any prior economic knowledge on behalf of the reader. A genuine interest on the subject will suffice.



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Product Details

BN ID: 2940046029888
Publisher: Iakovos Alhadeff
Publication date: 06/21/2014
Sold by: Smashwords
Format: NOOK Book
Sales rank: 820,071
File size: 107 KB

About the Author

I have studied economics to postgraduate level. I never worked as an economist though. I worked in the field of charter accountancy and I completed the relevant professional exams (the Greek equivalent of the English A.C.A.). My essays are written for the general reader with no economic or accounting knowledge, and the emphasis is on intuition. All my documents are extremely pro market and quite anti-socialist in nature. I admire economists from the Chicago and the Austrian School i.e. Milton Friedman, Ludwig von Mises, Friedrich Hayek, Henry Hazlitt, Murray Rothbard. I am Greek and English is not my first language, so I hope you will excuse potential errors in my syntax.

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