[Jthomp76]

We sure are buying tons of stuff! (Domestically and imported). By your logic we are doing great. Why do so many Austrians seem to think we are not doing so well (economically speaking)?

[Jthomp76]

How do we measure genuine growth in our economy? You said above its ok if we buy most things from abroad an don’t manufacture on our own. Is production of goods a sign of a healthy economy? If we don’t produce anything, where can we see growth elsewhere?

[Jthomp76]

Thanks john, good stuff. When he urges politicians to guarantee all citizens “dignified work, education and health care.” … And says that unfettered capitalism is tyrannical I have to take issue. He has a big pulpit and a lot of influence. Statements like this don’t help the cause of freedom.

[Jthomp76]

Great stuff, thank you! In regards to your above response about time preference, do artificially low interest rates in essense “trick” us into altering our spending and borrowing habits? In other words you say we have fewer savings because we now have higher time preference but is it possible that this isn’t totally the case and we are actually induced into more consumption because of the low rates and disincentive to save?

[Jthomp76]

So you’re saying if we as an economy prefer to consume and run up debt it is healthy so long as that is what we prefer?

[Jthomp76]

So a man who lives on credit cards and runs up massive debt is just as well off as a man who is thrifty and saves? I remember Hazlitt’s story of two brothers. The brother who spent all his money didn’t end up so well.

[Jthomp76]

Is this a sign of an unhealthy economy?

[Jthomp76]

Great point. Am I wrong though that we have become a nation of borrowers and spenders, and not savers? It seems our government as well as individuals are living on credit not savings. What are some visible signs of this behavior if not the trade deficit?

Also, how much of China’s dominance in manufacturing is due to their efficiency as you say and how much is due to the fact that they peg their currency to the dollar so our dollars buy more of their stuff?

[Jthomp76]

Gotcha. I keep hearing via Peter Schiff and others that we are not manufacturing enough. I imagine this is largely because we have no savings, no capital investment, etc? How does this lack of manufacturing show up in our economy if not in the trade deficit?

[Jthomp76]

In regards to trade deficit, how does the deficit not reflect a struggling economy? If we were producing a lot of goods would we not be more competitive? Were we not once a net exporter? Doesn’t the deficit show we are a nation of consumers, not producers?

[Jthomp76]

Thank you so much for your answer. To follow up, how would the Austrians explain the prosperity of this time period?

[Jthomp76]

So has rothbards true money supply exploded during this QE spree?

[Jthomp76]

Great stuff thank you. But why has M3 only grown 1% during the span you referenced? Also, if all those government measures are too narrow or too broad, what measure should we look at to best predict price inflation?

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