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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
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“The Austrian theory of the trade cycle will be validated yet again.”
As that relates to this:
Without bank credit expansion, supply and demand tend to be equilibrated through the free price system, and no cumulative booms or busts can then develop. ~ Murray Rothbard
The above, as far as I can tell, presumes the inevitability, if not the wanton greed for, legalized currency.
That is my confusion concerning Austrian Economics; in a nutshell.
I've spend a fair amount of personal cost in polling the Modern Austrian Economists as to their concept of "Profit".
That was one angle of view on the same confusion. I have yet to realize a precise response.
Profit is, as far as I can tell, a social expansion of credit directly proportionate to expanding production over consumption. Now that may seem very strange to the reader.
Profit, to the reader, as far as I can tell, may go like this:
If I can sell something at a price that is well over costs, then, I can receive a large profit.
Above may ring true for the reader.
Compare that 'truism' to this:
Profit is a human species capacity to produce more than the human species consumes.
The above may go in one ear, get jumbled up, and pass out the anus. The reader will probably blame me for their discomfort. I just try to communicate what appears to be true and scientifically provable.
Note: No one contends with what I write; therefore it must be shit.