Giant Among Catholic Economists
#3
Quote: In discussing the business cycle, for example, he writes, "To be sure, it is said that while business cycles open wounds they also heal them again. Today they cause loss, tomorrow, profit! But what about those cases where loss and profit do not recur to the same people or the same classes of people, so that some are carried to the dizzying heights of wealth, while others are reduced to economic ruin?"
The "business cycle" is evil.  Does he understand what causes it?  Please quote his theory of what causes it.  Heck, I don't have a degree in economics and it is blantantly obvious what caused this latest collapse.  Did his theories predict it?  If you followed his theories, were you prepared for the collapse and thus shielded your retirement savings?

Quote: In our own country, the ratio of pay between a CEO and a factory worker has gone from 25 to 1 in the late 1960s, to 42 to 1 in 1980, to 419 to 1 in 2002. Pesch considered such extreme discrepancies in income an evil, and he quotes approvingly the statement that the "differences in society should not reach a point where a nation ends up divided into two halves: one half too rich, the other half too poor."
  Again, does he just think that this ratio shooting up from 25:1 to 419:1 is just something that happened, or can he explain it?  So during the horrible, more free market days we were at 25:1, and then something happens during a period of liberal democrat control of both houses of Congress, and the ratio shoots up to 419:1.  What is his explaination?

And yet an Austrian will immediately point to 1972.  They will also repeat their mantra that an inflation will always benefit those who have access to the monopoly money first, and thus as you inflate more and more the CEOs will benefit more and more.  Curious how this explosion in pay ratio seems to kick off after 1972.  Do you know what happened then?  Does Pesch predict this?
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Giant Among Catholic Economists - by Belloc - 07-27-2009, 12:11 PM
Re: Giant Among Catholic Economists - by James02 - 07-28-2009, 02:00 AM



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