I have, in fact, been through this argument many, many times before since I was in college and found it in the end a profound waste of my time and energies that has done nothing for my growth as a human being So no
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Replying to @arthur_affect @Tom_Scribbler and
If you're so well versed in this, why aren't you making a coherent argument then? Bare assertions aren't enough to carry the day
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Replying to @stephanlivera @arthur_affect and
If you can't understand Arthur's argument, that's on your reading comprehension not his ability. But then, you went to the fucking Von Mises institute so... no big surprise there.
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Replying to @Tom_Scribbler @stephanlivera and
This dumbass article does the same dumb shit all Austrian School wackjobs do and just assumes "the market" is something that magically happens and accurately reflects "underlying economic realities" because the laws of nature demand it
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Replying to @arthur_affect @Tom_Scribbler and
Yes, cash hoarding is a "rational" response to uncertainty It then *creates* more uncertainty -- you hoarding your cash means everyone else connected to you is now uncertain about when or how you will spend it Then *they* hoard *their* cash It's an uncertainty feedback loop
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Replying to @arthur_affect @Tom_Scribbler and
Seriously interested in this. Isn't it obvious that people will start spending once they've hoarded enough to feel comfortable? Sitting hungry on a pile of cash doesn't sound very humanlike to me. Total production will be lower ofc, but so what? So will CO2 emissions then...
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Replying to @herminghaus @Tom_Scribbler and
It's a collective action problem (same kind of thing as the Prisoner's Dilemma) All of us may recognize that a recession is bad for all of us, all of us may be "hungry atop a pile of cash", but the economy as a whole doesn't start working again unless we all coordinate
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Replying to @arthur_affect @herminghaus and
In a decentralized system a first mover who tries to break a feedback loop gets punished That's what makes it a feedback loop Coordinating collective action ("Look, if we ALL do it at ONCE then no one ends up holding the bag") is what human institutions were invented for
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Replying to @arthur_affect @herminghaus and
Labor unions exist because coordinated strikes work to raise wages, whereas individual workers all sitting around waiting for someone else to be the first one to complain to the boss will be sitting there forever
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Replying to @arthur_affect @herminghaus and
Governments and taxation exist because no one chips into a kitty if there's a chance they'll be the only one to do it, there's still not nearly enough at the end to pay for anything and they got to be a schmuck for nothing
1 reply 3 retweets 30 likes
Central banks exist because one big signal - "Interest rates have been cut! Time to start borrowing again!" - works to end recessions and waiting for one wildcat bank among many to be the first to risk being taken for a sucker doesn't All of this was learned from experience
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Replying to @arthur_affect @Tom_Scribbler and
CB certainly weren't *created* for that purpose. They may have served that function for a while, but now they mostly finance the state, decoupling it from the feedback loop. There is else nothing to stop them but their own spine, and that was bent and broken long ago.
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