In the article 'An Open Letter to Gary Becker re: Depressions', Robert P. Murphy explains why Austrian economists reject the current meddling with the market (especially during recessions) and explains how Gary Becker misunderstands Austrian theory.
He explains first "that the business cycle is an unintended consequence of government intervention in the monetary and banking system." He then gives a simplified analogy of the Austrian theory: "To adopt a biological metaphor: Of course nobody likes vomiting. But if someone has ingested poison, throwing it up is a good thing. Efforts by physicians to numb the person's gag reflex and settle his stomach will lead to disaster."
He then points out the flaws in Becker's blog post, later giving another metaphor, this time explaining what the current government actions are doing to the economy:
"Further "stimulus" efforts can postpone the recession, to be sure, but that just means that when it does hit, it will be all the more severe. Using fiscal and monetary policy to stave off an impending downturn is the economic analog of giving another fix of heroin to an addict in order to avoid the painful period of withdrawal. Such treatment isn't doing the patient a favor, and only ensures that the adjustment back to a sustainable lifestyle will be all the more difficult."
He goes on much longer and in much more detail on Austrian theory, misconceptions, and the current crisis.
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