In his essay, Money and Our Future, Llewellyn H. Rockwell, Jr. begins with an ironic twist. He says, “We are fortunate to be living in these times….” To make sure that his sardonic meaning is not lost to the reader, he goes further to paint these “fortunate times” by asking, “What is fortunate about our times? The economy is tanking, stocks have been pummeled, unemployment is rising, and Washington is pursuing the worst combination of economic policies since Hoover and FDR….”
Irony aside, Rockwell Jr. points out that despite the economic crunch, we are indeed fortunate because we have the power of information and a clear understanding of the bigger picture. We know why businesses are closing up. We know why people are losing their jobs. We are not completely ignorant. He continues to say that this enlightenment places us in a better position to make the right decisions and chart a way out of the current economic mess.
Basing his argument on historical evidence, Rockwell Jr. draws comparisons by looking at past recessions and what was done to fix the situation then, what worked and what we can duplicate to salvage our present situation. He puts a strong defense for a hands-free government in the money market and further prods the relationship between free market, government control and recession.
He strongly holds the view that the past should be the blueprint from which we draw lessons and forge a way forward. He also points out that we should avoid looking at the situation in bits and pieces, but should strive to see the bigger picture. He argues that the trick to healing the economy is by clearly understanding the bigger picture. In the same breath he accuses the media and most economists of failing to see the bigger picture and thus prescribing quick-fix solutions, which, he says, history has shown will not work.
It is with this in mind that he is appalled by Washington’s quick-fix strategy of dealing with the recession by pouring trillions of dollars in an effort to recoup the economy. This, he says will only worsen the situation in the long run.
The solution as he puts it, is simply understanding Henry Hazlitt’s rule in Economics in One Lesson: “economics consists in looking at the effects of policies not on one group but on all groups, not only in the short run, but in the long run.
Rockwell Jr. recommends a free market with little government intervention and argues that the recession should be let to run its course. He proposes a method akin to survival for the fittest, where only the strongest will make it. “Let failing banks die, let profitable banks live,” he says. He cites the 1920 and 1921 recession as a good example of how to handle a recession. He says, “The less the government did, the better the results long term.”
He argues that times like this call for innovation and creativity and not for government bailouts. “…Get the government out. Let the people be free to manage their own affairs…” he says. He calls for alternative methods of payment that would allow use of different currencies. He says, “Just imagine what would happen if legal-tenders were repealed and the government stopped intervention in the market for money. Virtually overnight, we would see the appearance of hundreds if not thousands of new payment systems and alternative monies online.”
Rockwell Jr., concludes by pointing out that the economy will not be revived by any politician’s emotional willpower, but by a clear understanding of economics and less government involvement. According to him, the best way to deal with this recession is not to fix it, but to let it run a free course.
Emily Kanyi is an intern at the American Journalism Center, a training program run by Accuracy in Media and Accuracy in Academia.
