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In 2007, Garet Garrett accurately likened the US Federal Reserve policy of bailing out failed European institutions as a Ponzi scheme responsible for the global economic collapse of the 1930s.

In the Mises Daily from Friday, March 05, 2010, Jonathan M. Finegold Catalan explains Garet Garrett's Invaluable Lesson. Today, America is still in the business of bailouts; at home and abroad. Before wealth can be distributed to someone the government deems is justly entitled, that wealth must be created by someone. That wealth must be forcefully expropriated from the producer before it can be gifted away to the 'needy'. The interventionist policy rooted in the morals of social entitlement caused a global economic crisis 80 years ago. It seems not much has changed. At some point, we run out of real wealth available for governments to plunder. A is A.

In this article, Catalan quotes one the many brilliant observations by Ludwig von Mises in Human Action. Mises stated that, “Intervention aims at confiscating the "surplus" of one part of the population and at giving it to the other part. Once this surplus is exhausted by total confiscation, a further continuation of this policy is impossible.[2]

In other words, a policy of debt-inducing wealth redistribution is not sustainable. Catalan explains “the crisis of interventionism is summed up by the adage, 'the problem with socialism is that eventually you run out of other people's money'."

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Read more: Garet Garrett's Invaluable Lesson - Jonathan M. Finegold Catalan - Mises Daily http://mises.org/daily/4117#ixzz0pEVDeoTi

...beginning with the premise that people are entitled to certain betterments of life. If they cannot immediately afford them, that is, if out of their own resources these betterments cannot be provided, nevertheless people are entitled to them, and credit must provide them” - Garet Garrett

 
What is "Austrian Economics"? Why the recent resurgence in popularity? A-equals-A.com explains in the article, 'Austrian Economics Booms in Popularity, Busts Mainstream Myths. Click here for a PDF of the complete article.

The following are excerpts from
'Austrian Economics' Booms in Popularity, Busts Mainstream Myths by A-equals-A.com:

"...Renewed popularity is primarily due to the Austrian Theory of the Business Trade Cycle explaining the causes of economic booms, busts, recessions, and depressions. Economists using the Austrian theory predicted the Great Depression, the recessions of the 1970s and 1980s, as well as the most recent financial collapse with precise accuracy..."

"...Despite winning a Noble Prize for Economics (F.A. Hayek, 1974), exploding Marx's Labor Theory of Value
in the 1880's (Eugene von Bohm-Bawerk), developing the theory of marginal utility and explaining the historic origin of money (Carl Menger), and writing possibly the single greatest economic treatise in human history (Ludwig von Mises, Human Action), Austrian economists are largely unknown to the general public today and go unmentioned in our schools' history books..."

"...For the specific reason that Austrian economics provides a transparent view of reality, logically linked by a chain of reason – it is politically unpalatable. Austrian economics, because it presents an undistorted cause-effect relationship between public policy and economic impact, is a real threat to those in power..."

Read the entire article by following one of the links below:

PDF Download of the article: 'Austrian Economics Booms in Popularity, Busts Mainstream Myths


or

Click here to view the article as an embedded file 



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This video is a great introduction to tomorrow's feature A-equals-A.com post: 'Austrian Economics' Booms in Popularity, Busts Mainstream Myths. 

The Fear the Boom and Bust a Hayek vs. Keynes Rap is a very entertaining, well put together music video that humorously contrasts the economic theories of Keynes (the theory our government is following) and the Austrian theory presented by Nobel economist F.A. Hayek.

Click here to learn more about the theory of the boom and bust business cycle.
 
Welcome Friends!

It is with great excitement I welcome you to A-equals-A.com. The content of this site was put together in less than three weeks. Soon deep content will be developed to support the existing framework. A-equals-A.com is a resource dedicated to providing the tools needed for those interested in developing a consistent, reason-based philosophy of life and liberty.

I have taken an extended leave from working for a premier global business risk and consulting firm to focus my energy on something about which I feel very passionately. We are living during a very pivotal time. I have no doubt that the months and years ahead will greatly influence the future of our country and the world. For years the ideological foundation of our country has been slowly eroded like a stream of water over a great boulder. Gradual erosion inevitable causes even the mightiest boulder to crumble eventually. The recent national and global crisis indicates we may be close to that point.

The ideological battle will come to a head soon as the current political and monetary system can no longer continue to survive on its unsustainable foundation. We are seeing and will continue to see a push for increased government intervention and control. This ideology is fundamentally broken and has resulted in destruction every time it has been tried throughout human history – only the proponents of government control don't want their policies to be linked or associated with any particular ideology. Those that survive off the expropriation of government granted special privilege and control will fight vigorously.

In order to battle for America and the principles upon which this great country was founded, we must understand and champion the only philosophy compatible with life and prosperity – an ideology grounded in reason, based on the principle of individual human rights.

Over the course of the last three weeks I built the framework for a new website (www.A-equals-A.com) which I will be using as a platform to share thoughts and new-found knowledge with family, friends, and anyone else interested in learning more about a reason-based philosophy of life and liberty. This, the first major experiment of my educational journey, has already proven to be an exciting challenge for me as a thinker and a writer.

In the the coming months, as I venture deeper into my study of economics, history, and philosophy, I will continue to expand and adjust the content of this site. Learning is an active process. I welcome and appreciate any feedback you have regarding the site or the ideas I present. I can be contacted using the website's contact page.

For those new to A-equals-A.com, check out the Home Page for a welcome message and read the About Page to learn more about the mission and values of this site. Explore America in Crisis for an honest snapshot of our nation's current situation. Take time to dig in deeper to the fundamental principles of Philosophy and Economics.

The only formula to save America is A=A. Please check back frequently for new article postings, as well as links to a wealth of free information.

In honor of life and my love for it,



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