This CBS News "48 Hours" story speaks for itself, so I won't add much of my commentary to it other than to note that it is not isolated to Focus on Children or to Samoa. Within the last two years, similar cases have developed with China, Guatemala, Viet Nam, and other countries.
In my last post, I touched on the differences between the economic theories of John Maynard Keynes and Ludwig von Mises. Immediately aftward, I was directed to this story in the New York Times. It seems that americans are saving more instead of spending the their money on consumer goods. Up until this downturn, about 70% of the US Economy was consumer spending, and in 2005, the US Savings rate was negative 2.7%. The "stimulus" is supposed to stimulate spending to get money moving again. But it isn't happening as planned. Folks are saving for down payments because they don't expect to get zero down home mortgages; they're saving to replenish their decimated retirement and college funds. The austrians believe that the best way to "fix" the economy is to allow the "malinvestment" created by the false signals in the economy (from the open market ops and deficit spending) to be liquidated and the resources repurposed into better investments. It...
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