Austrian Business Cycle Theory for Dummies: Recovery Chapter

Steven Horwitz

"I'm not throwing up and hungover, I'm just reallocating the malinvested resources of the boom."

Comments

[Adam]

Liquidating malinvestments

[Roger Koppl]

Bush got drunk last night and Obama had a hangover this morning.

[Nikolaj]

No, this is not the hangover, even less a "liquidating malinvestment", but only unanticipated increase in the demand for money that must be accommodated by increased credit supply, if we are to avoid another Great Depression calamity. And comrades from the Fed did excellent job thus far in preventing the fatal shortage of credit (see here http://upload.wikimedia.org/wikipedia/commons/7/7d/Federal_Funds_Rate_(effective).svg).

[Steve Horwitz]

You know a sense of humor isn't mandatory for being welcome at gatherings of humans, but it sure does help.

[GilesS]

If somebody were to make the alcohol content on drinks 50% lower before a party (assuming people look at the alcohol content), I bet you'd have a pretty wild party but it'd be a mess to clean up.

[GilesS]

If somebody were to represent the alcohol content as being 50% lower is what I meant.

[Rafe Champion]

If you made the alcohol content lower without telling people you might have an equally wild party with less mess to clean up. There has probably been work done on this.

The Australian intellectual and wit, Barry Humphries put about a rich vocabulary for drinkers - the liquid laugh, the technicolour yawn, throwing a map. He also created (in addition to the legendary Dame Edna) the archetypical Australian innocent abroad, Bazza Mackenzie. I don't know if this list wants to know about the time that Bazza met Karl Popper, this is undergraduate stuff that appeared in a student newspaper. http://www.the-rathouse.com/KPmeetsBM.html

[GilesS]

Rafe, what I meant was keeping the alcohol content the same but misrepresenting this amount.

[Bob]

Paraphrasing Milton Friedman " There is no Free L(a)unch! As an economist you should know better than anyone that it is sometimes painful when you violate the "law of diminishing returns" when it comes to drinking!

[Rosthorn]

On the "watered down beer" deal, this is not scalable. For one party that may work, but soon Gresham's law sets in and the pissheads shark for the special brew and take the cans home whilst drinking the piss at the party.
Ant if it is government massing, then the results quickly squew the system.