Tag Archives: business cycles

The One Minute Case Against Consumptionism

There is a tradeoff between economic growth and consumption Economic growth is made possible by forgoing current consumption. For example, consider the case of a teenager considering whether to save money for his future. If he spends his salary on toys and trinkets, he will never accumulate any savings. If, on the other hand, he …

February 15, 2009 – 12:26 am | By David Veksler | Posted in Economics | Tagged , , , , | Comments (2)

The One Minute Case for the Austrian Business Cycle Theory

The Austrian Business Cycle Theory was developed by the economist Ludwig von Mises to explain the phenomenon of business cycles. It provides crucial insight for understanding the cause of cyclical boom/bust cycles and their connection the government’s manipulation of the economy. To understand the Austrian Business Cycle Theory, an analogy is helpful: Imagine an economy …

October 2, 2007 – 3:18 pm | By David Veksler | Posted in Economics | Tagged , , , , | Comments (5)