The Austrian School’s 7 Commandments
As quoted from Jim Sinclair’s website:
The Austrian School’s 7 Commandments:
The Austrian free-market economists use common sense principles:
1. You cannot spend your way out of a recession.
2. You cannot regulate the economy into oblivion and expect it to function.
3. You cannot tax people and businesses to the point of near slavery and expect them to keep producing.
4. You cannot create an abundance of money out of thin air without making all that paper worthless.
5. The government cannot make up for rising unemployment by just hiring all the out of work people to be bureaucrats or send them unemployment checks forever.
6. You cannot live beyond your means indefinitely.
7. The economy must actually produce something others are willing to buy.
I myself would add an additional 3 Commandments, to get to the obligatory 10:
8. Every government bureaucrat should keep the following motto in mind when attempting to influence the economy: “First, do no harm!”
9. Central bank-supported fractional reserve banking is an economically distorting, ethically questionable activity. In particular, no government should ever do anything to save any bank from the full consequences of a bank run, no matter what the short-term consequences.
10. Gold is God’s money.