MORE CONTRARIANISM

This time on the economy, from Lew Rockwell at the Mises Institute.

Money quote:

Sometimes the bad news is the good news. So it is with the report
that retail sales are down by 0.1 percent in July, the sharpest drop in
many months.

Why good news? It means that consumers are starting to cut back.
They could be going into less debt. They might be saving more. They are
being more careful about long-term plans pending short-term trends.

These are all preconditions for recovery. It’s only bad news if one
adopts the crude theory that economies are sustained by consumer
spending.

This entry was posted in Stuff. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>