Do Depressions Happen in Statist Economies? | The Nonstop Bust

#economics #businesscycle #depression

It’s commonly believed that depressions don’t happen in statist economies. It’s believed that business cycles happen from the market economy. This is the result of monstrous lies. This is horrendously wrong. Cycles happen from intervention in the market economy. There are business fluctuations in the market but not booms and busts. Resources are misdirected from loans made with an artificially lowered interest rate.

The entrepreneurs are misled by the illusion of wealth the artificial interest rate creates. It's fictitious. Resources are misdirected in the boom and values are reestablished during the bust. The boom is not good times. It’s a period of distortion. The bust is actually the good thing. While this is painful, it’s a necessary adjustment. The longer the bust is pushed back, the worse it will be. This is commonly done by printing more money.

Read More: https://mrdevinney.com/do-depressions-happen-in-statist-economies/