By Benito Segovia
Newsweek, the quintessential mainstream media publication (not a compliment) embodying all things globalism and collectivism, recently published an article titled “The Triumphant Return of Hayek” by Ruchir Sharma. When this exciting headline popped up I was tickled but wary – determined to discover what twist, if any, the story held for the Austrian School and its leader Hayek.
To my delight the article correctly described the public’s growing criticism of Keynesian-backed policy and the growing favor of Austrian School ideas. Yet ultimately concluded that it was distortions of Keynesianism and monetarism that lead to the systematic failure of these policies.
“Keynes would probably never have supported big government deficits during boom times, such as those that led to our current debt crisis. Likewise, Friedman would probably not have backed the new Fed use of monetary policy as a tool to engineer expansion rather than merely cushion the pain in a downturns.”
Sharma also continues the national narrative that unchecked free markets and sound money caused the Great Depression. At least he points toward high-tax policy as a contributing factor.
“Faith in the market’s purging power served the U.S. well in the 19th century, when the economy emerged stronger after each recession, but was taken too far in the policy mix of tight money and high taxes that led to the Great Depression and the rise of the Keynesians.”
I’m disappointed that a more candid assessment of the Austrian School wasn’t given a lead role in this article but at least it’s entering into the mainstream discussion. As they say in show business; any publicity is good publicity.



When mortgages default and businesses fail, who gets the assets?….BANKS and FINANCIAL INSTITUTIONS.
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