Schools of economic thought
There is no sharper contrast than that which exists between Austrian economics and Keynesian economics.
As a preface I must say that it is not Republican vs Democrat.
Consumer/demand side economics. Empower the consumer, growth will ensue.
Moderate inflation is healthy/normal.
Recessions/depressions are bad, must put a floor underneath them at all costs.
Federal reserve(central banks) = good
Bailout good, bankruptcy bad.
Interest rates low/manipulated
Goal moving forward? Massive government spending/stimulus. The hope is to spur the economy enough and be able to pay down debt/deficit later
Austerity is bad. "Austerity will hurt the economy short term, this will persist long term."
Supply side economics. Create something. Your workers can save or spend.
Deflation is healthy/normal.
Recessions/depressions are healthy. You are able to reallocate resources from wasteful areas to non wasteful areas. i.e. bankruptcy is good. Bailout bad.
Federal reserve(central banks) = bad
Savings is valued/promoted
Interest rates market driven
Goal moving forward? Declare bankruptcy immediately. The US' creditors will be paid back later than promised or with less # of dollars than promised.
Taxes: this is money taken from the private sector. Money that would have otherwise been used for saving/consumption is now used by the government to consume.
Austerity: to cure recessions CAUSED by keynesian policies, austerity is not only the right thing to do but the only option. You can't just cut taxes and pretend this crisis will cure itself, nor do the inverse. To spend, you must(or ought) to first have. Thus, to solve our current crisis, spending cuts must occur first.
Austrian economics is the smallest, but longest existing school of economic thought. Austrian economics has seen a resurgence in the recent decade. Austrian economists warned for many years of what was coming (2008 and beyond). We saw grave warnings as the housing bubble reached its peak. Keynesians were...... doing the opposite. See for yourself.
THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED (Ludwid Von Mises)
So what is actually advocated? The liars and idiots will say that we want NO role for federal government. That is simply not true. But what you really want to see is a constitutionally limited federal government and EMPOWERED states. Wanna live in a socialist paradise, fine. Wanna live in capitalism central, fine. The obvious keynesian fear is that there won't be enough tax revenue to support the helpless dependents. It is feigned altruism. They only want to pay higher taxes if everyone else does at the same time, and usually they just classify everyone richer than them as "rich" and thus that is who you tax. We however promote donation and volunteerism. With the government not doing it for you....... with your money... you would be FREE to do it yourself (or not). Many charities have 0% administrative fees. Whereas less than 20 percent of all money spent on welfare actually ends up in recipients' hands.
MOST people will side with keynesian economics. I hope my notions put forth across this thread have at least made individuals think about things in a new light. Whether you side with one school or another, it is guaranteed that your cost of living will increase in the future. Now is not the time for excesses. The service sector of our economy will be hurt the most. Consider learning new skills that are concurrent to societal needs. If tomorrow your spouse lost their job, what are the things you would stop spending money on first?