"How the Market Creates Jobs, and the Government Destroys Them"

“How the Market Creates Jobs, and the Government Destroys Them”

“By bringing about the business cycle, Federal Reserve money creation causes unemployment. Inflation not only raises prices, it also misallocates labor. During the boom phase of the trade cycle, businesses hire new workers, many of whom are pulled from other lines of work by the higher wages. The Fed subsidy to these capital industries lasts…

Tom Duncan

•

August 18, 2010

“By bringing about the business cycle, Federal Reserve money creation causes unemployment. Inflation not only raises prices, it also misallocates labor. During the boom phase of the trade cycle, businesses hire new workers, many of whom are pulled from other lines of work by the higher wages. The Fed subsidy to these capital industries lasts only until the bust. Workers are then laid off and displaced.” Read more.

“How the Market Creates Jobs, and the Government Destroys Them”

Walter Block

The Free Market, May 1988, Volume VI, Number 5.

Via the Ludwig von Mises Institute.

Image by vegadsl / FreeDigitalPhotos.net.

Tom Duncan