Tuesday, August 14, 2012

Why the Liberal Party is Probably Doomed

Several weeks ago I sent an e-mail to a prominent Liberal Party member describing why I believe the Liberals have failed so badly and what a "liberal" actually is and what the policies of a "liberal" party should be.

Surprisingly, I actually received a response sympathetic to my cynicism. So I sent this e-mail in response to the response. I received this response yesterday in my inbox. Clearly, the Liberal I was e-mailing is not a liberal in the classical sense. It's a little disappointing since he/she seemed to be the most levelheaded and open to new ideas. Perhaps there is still time to change his/her mind. Regardless, I'm reluctantly reminded of Rothbard's quote about the state being a gang of criminals writ large when I read this [emphasis mine]:

Hi Caleb,

What a great description of your travels and what you saw and heard.

I will take a minute to say that I am actually a big fan of Mark Carney's, and I think he's doing an excellent job as Governor of the Bank. And I will take one exception to your comment about going into debt to get us out of debt. I agree, but going into debt is sometimes necessary -- and indeed helpful -- just as taking a mortgage or a business loan is needed to expand and grow. Provided it's manageable (which is pretty key), it's a good thing.  But I also have a hard time with a government that doesn't understand that you can't keep increasing your debt -- you must look for surpluses in good times with which to pay it down.

Slightly different than what you were saying, but thought I'd clarify my views.

Stay in touch.

All best,


Being a "big fan" of Mark Carney and believing that he is doing "an excellent job" only highlights how little this person understands. As harsh as that may sound (especially given the politeness of this individual) the reality is that central banks are detrimental to prosperity. By lowering interest rates past their market level and keeping them there, Mark Carney has created a credit boom that is unsustainable.

For more information I suggest, in no particular order:

10 Reasons Why Austrian Economics Is Better Than Mainstream Economics

Austrians vs. Keynesians, Forecast Comparison

Business Cycle Primer

Austrian Business Cycle Theory: A Brief Explanation

Economic Depressions: Their Cause and Cure

My Speech Delivered at the New York Federal Reserve Bank

"Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem

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