Wednesday, February 8, 2012

My Letter to the Wall Street Journal re: Maybe That's an Oncoming Train

Subject: Maybe That's an Oncoming Train
Date: Wed, 8 Feb 2012 13:01:05 -0500

Re: US Market Shines Brighter

Dear Sirs:
Perhaps that light at the end of the tunnel is an oncoming train. There is another interpretation to the report that some US companies are "bringing business home". It is that the worldwide economy is shrinking and is shedding layers of specialization as a result. Austrian business cycle and capital theory explains that an expanding economy--which, of course, does not recognize political borders--requires the establishment of new, more specialized stages of production, which can only be financed with new, real capital. If you became poorer and could no longer afford to pay the neighbor kid to mow your lawn, would you consider it a good thing that you were repatriating this toil to yourself?


Patrick Barron

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