Friday, May 16, 2014

Mark Thornton Speaks Truth and Demolishes Proposals by Modern Day Keynesians

Mark Thornton smashes the Keynesian theory advanced by Financial Times columnist, Martin Wolf, who recently claimed in  a column titled, Wipe out rentiers with cheap money, that "cautious savers no longer serve a useful economic purpose".


  1. "cautious savers no longer serve a useful economic purpose".

    Standard Keynesian Klaptrap. Wolf only takes it to it's "logical" conclusion. The Keynesian Kollectivists have always despised individual independence. Individual savings mean exactly that, freedom from dependency on the State. Can't have that. So the Keynesian Kollectivist Kabal must seek to destroy savers as a class. As a practical matter it is also easier to centrally plan peoples lives if they are all dependents of the state.

    Mr. Thornton needs to work on his delivery. He is too stiff and amateurish, which gets in the way of the message. Other than that, a very interesting presentation.

  2. He's only addressing the sub-headline of the article and repeating the standard boiler plate one solution fits all argument.

    Wolf's point is there is a vicious circle of weak demand leading to weak investment leading to weak demand. Wolf's point is that rewarding cautious investors re-enforces this "vicious circle" which is why they do not serve a useful purpose under these specific circumstances.

    "Low interest rates are certainly unpopular, particularly with cautious rentiers. But cautious rentiers no longer serve a useful economic purpose. What is needed instead are genuinely risk-taking investors."

    Of course Austrian economists don't care about demand. You can merely invest and create demand. Build a rickshaw factory and suddenly everyone will want a rickshaw if you lower the price enough (profits don't matter in the free markets garden of Eden). Anyone wonder what drives competition in this wonderful world where demand does not matter? Aren't the businesses competing for customers (buyers or "demanders")? Never mind. LOL

    1. Hey Jerry,

      If the Govt were to come out with a plan tomorrow requiring everyone to stop using there cars and use rickshaws because it would reduce global warming I'm sure you would be all for it...Drone.

      "In their absence, governments need to use their balance sheets to build productive assets"

      LOL. Yeah because Governments have shown a real ability to build productive assets...Moron