The "Austrian" economists, more consistently than those of any other school, have criticized nearly all forms of government intervention in the market - especially inflation, price controls, and schemes for redistribution of wealth or incomes because they recognize that these always lead to erosions of incentives, to distortions of production, to shortages, to demoralization, and to similar consequences deplored even by the originators of the schemes.
Henry HazlittRelated topics
austrian government inflation intervention lead market production school wealth redistributionRelated quotes
Imagine if the government chased sick people with diabetes, put a tax on insulin and drove it into the black market, told doctors they couldn't treat them, and then caught them, prosecuted them for not paying their taxes, and then sent them to jail. If we did that, everyone would know we were crazy. Yet we do practically the same thing every day in the week to sick people hooked on drugs. The jails are full and the problem is getting worse every day.
Billie Holiday
A pearl fishery is being established on the Malabar coast. Expert pearl divers are coming to Mysore from foreign lands. They will be with us for a short while until our own people can be trained. Believe me, there is glitter and romance in those pearls-and there is wealth and profit in them. Government is prepared to subsidise your training the youth in this field of work. You will also be assisted in case you suffer any financial losses in the pioneering years. Can I count on your cooperation?
Tipu Sultan
There is a value called "mind” as there is a value oil, wheat, or gold. ... One can invest in that value, one can "follow” it as they say on the stock exchange; one can watch its fluctuations in I know not what price list which is the world's general opinion of it. ... All these rising and falling values constitute the great market of human affairs. And of these the unfortunate value mind does not stop falling.
Paul Valéry
In figure 3 we show the money and domestic asset market equilibrium schedules for given stocks of each of the assets. Along MM the domestic money market is in equilibrium. Higher interest rates reduce money demand so that equilibrium requires a depreciation and thus a rise in the domestic currency value of foreign assets and - hence wealth. The exchange rate thus plays a balancing role by affecting the valuation of assets.
Rudiger Dornbusch
The so-called free market does not provide consumers with proper information, because the social and environmental costs of production are not part of the current economic models. ...an ecological tax reform would be strictly revenue neutral, shifting the tax burden from income taxes to "eco-taxes." ...the taxes would be added to existing products, forms of energy, services, and materials, so that prices would better reflect true costs.
Fritjof Capra