In Canada’s National Post (the rough equivalent of the Wall Street Journal), Peter Foster states in his editorial, “Keynesianism’s systemic failure” the following: “Post-crisis stimulus stimulated little but insupportable government debt — and now inflation. It was joined by a downward manipulation of interest rates that has promoted what Austrian economists called ‘mal-investment,’ plus asset inflation.”
About which, a few comments. It is simply marvelous that in a newspaper of this stature, which ordinarily favors the Keynesianism of scholars such as Milton Friedman, a columnist could not only criticize Keynesian economics, but actually support the main competitor of that mistaken viewpoint, Austrianism. And, further, accurately report on the praxeological school of thought. “Mal-investment” is indeed at the very core of the Austrian Business Cycle Theory, and it is very gratifying. And not only that—Foster also mentions Hayek’s concept of the “fatal conceit.” All in all a good day’s work on his part.
The National Post, like its American counterpart, the Wall Street Journal, may be war mongering mouth pieces of the neocons. But, when it comes to economics, they are not all bad.2:16 pm on April 20, 2011 Email Walter E. Block