Writes S.C.: “I just got through reading your speech. It’s amazing how the simple things in life resonate. I have a BS in Business Administration; including about 15 hours in economics and finance. I have been an institutional fixed income VP for major firms and now I am in the mortgage business. However your simple ‘Broken Window’ explanation really puts a frame (no pun intended) around government’s meddlesome role in our economic lives. Being a broker, I developed a cynical opinion of government intervention: Markets go up, markets go down, but brokers like lawyers are always making money no matter how badly the client suffers. When markets are stable, transactions are fewer and farther between. Brokers suffer. The FED creates volatility and Wall Street prospers.
“The equity market is the best yardstick (perhaps in conjunction with gold) of the economic disease called inflation. I once asked Lawrence Kudlow, on a call in show, how much of the DJ Industrial Average or the S&P 500 price increases since 1930 were attributable to inflation vs. higher outputs profits etc. He couldn’t answer me. He seemed to be at a loss for words.
“Gosh, I so pray Ron Paul can distill the Broken Window message in a way that would play well in commercials and on the debate stage. Because it is so simple, it’s a message even Ma and Pa could digest. It is The Economy Stupid. Maybe even a few numb nuts legislators could catch on. Of course the major obstruction there is, one has to actually want to understand.”
2:02 pm on January 28, 2008 Email Llewellyn H. Rockwell, Jr.
