Thursday, November 8, 2012

Ayn Rand Bashes Cato Shrugged Prez John Allison

Cato Shrugged president, John Allison, continued to display his lack of understanding of basic economics and business cycle theory. He stated, during an interview on CNBC, that price inflation could become a threat once the economy displays growth. Has he not heard of stagflation? Is he not aware the US experienced stagflation? Allison sounds like a typical Keynesian, with some kind of aggregate demand thinking about the economy.

Maybe he needs to read Ayn Rand, who wrote in Philosophy Who Needs It?:
You have heard economists say that they are puzzled by the nature of today’s problem: they are unable to understand why inflation is accompanied by recession—which is contrary to their Keynesian doctrines...
He also, incredibly, appears to be not concerned about problems developing in the economy for another 15 to 20 years!


  1. Talk about giving libertarians a bad name. Sheesh that statement could even be attributable to "Austrian economists".... Though he isn't one. Yikes.

  2. I'm the head of a major institution engaged in FRB at the heart of its daily operations.

    I'm a libertarian and an Austrian.

    I wonder if Allison even knows what FRB is? Most Bankers don't seem to, I've asked a few and I always get puzzled looks. Even bought one rothbards book on the depression. Haven't heard from the guy in a year.

  3. I think you're right. 99% of bankers don't know the heart of today's banking system and why they can lever up 20:1.