Thursday, July 2, 2015

The Boom Phase of the Fed Created Business Cycle Continues

The unemployment rate falls to 5.3%.

It is a Boom and Bust cycle. guys--as explained by Austrian School Business Cycle Theory.



  1. I've heard credible analysts explaining away the current unemployment rate claiming that most of the new jobs are part-time. And that if one looks at the workforce participation rate, it hasn't been lower since 1977. Does your understanding of a boom according to ABCT require us to think there is currently a very strong employment number? My understanding of ABCT is that lower-than-free-market interest rates result in higher levels of borrowed money which gets plowed into capital projects that have a longer payback period. I don't think full employment in the general economy is necessarily implied in an ABCT boom. Would you please clarify?

  2. Capital projects require labor, hence the increase in employment during the boom.