[aposiopetic]

The fundamental error of the interventionists consists in the fact that they ignore the shortage of capital goods.
In their eyes the depression is merely caused by a mysterious lack of the people’s propensity both to consume and to invest.
While the only real problem is to produce more and to consume less in order to increase the stock of capital goods available, the interventionists want to increase both consumption and investment.
They want the government to embark upon projects which are unprofitable precisely because the factors of production needed for their execution must be withdrawn from other lines of employment in which they would fulfill wants the satisfaction of which the consumers consider more urgent.
They do not realize that such public works must considerably intensify the real evil, the shortage of capital goods.

[iowamark]

Ludwig Von Miss?

[arthurus]

Complete adoption of Socialism will,, indeed, end the Business Cycle. The tradeoff for that great economic benefit is that the serf class will see steady and irreversible economic decline as the State (the rulers) confiscate everything bit by bit in order to keep the enterprise going. But there will be no business cycles any more. An unchanging and steady decline to poverty and even is not a “cycle.”