How best to deal with recessions (A very timely video)

rothbard cc cc

From the master Murray Rothbard.

Does one generally want to have long recessions or a short recessions? The answer seems obvious, most people would want shorter ones even if it meant a particular short recession was more acutely painful than a long one. Have the thing and then get on with life. But our fear of recessions, our fear of markets clearing, has created a ┬áculture which insists that politicians (our oh so competent politicians) “do something.” In “doing something” in the case of recessions, the pain is drawn out and markets are slower to clear. What might have been a sharp shot to the shins instead becomes a chronic condition, not unlike the situation we have today.