Republicans blame Democrats when a Democrat is president, and Democrats blame Republicans when a Republican is in the White House as the economy contracts. Neither political party is directly responsible for the boom/bust cycle. The blame for the unsustainable boom and the inevitable bust is the Federal Reserve.
To understand why we have never ending booms and busts, Murray Rothbards’s essay first published in 1969 is invaluable. Everything you need to know how the economy goes from boom to bust repeatedly is spelled out in Rothbard’s concise, easy to understand monograph.
Last week I used the insight of the Austrian School of Economics to explain how past cycles unfolded and how the current cycle is different than previous ones at the Future of Freedom weekly webinar on the Federal Reserve and inflation.
The bottom line is that the economic cycle will be with us as long as the Federal Reserve manipulates interest rates and the dollar is not “as good as gold.” In the meantime, register for the upcoming webinars and hear several experts discuss the
Fed and how to end the pain caused by the Fed’s legal money monopoly.