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Confront reality
- Oct 25, 2016
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- #421
It is all about liquidity. Automatic stabilization is the key.
Automatic stabilizers are economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers on an individual basis. The best-known automatic stabilizers are corporate and personal taxes, and transfer systems such as unemployment insurance and welfare. Automatic stabilizers are so called because they act to stabilize economic cycles and are automatically triggered without explicit government action.
Read more: Automatic Stabilizer Automatic Stabilizer
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If Hayek were here he would bitch slap you for that.
He would listen to economic reason; the next best thing to "market based" transactions is the automatic stabilization of an automatic stabilizer; no means testing interference required.
Proposition 2: The study of the market order is fundamentally about exchange behavior and the institutions within which exchanges take place.
surely, then; automatic stabilization must improve market order and not diminish it.
Free enterprise without managed markets is self compensating. As such it is automatic.
Managed markets are not self directed and thus cannot be automatic.