Are low interest rates good for the economy? Many argue we need low rates to increase spending, since these rates make borrowing money cheap. Prof. Davies explains, however, that lower rates don’t mean more spending; they mean more spending now rather than in the future. The choice for every individual is to spend more now (borrow), or spend more in the future (save).
So what interest rate is best overall? Prof. Davies says the best rate is the market rate—the rate we get when the Federal Reserve doesn’t meddle in financial markets. Individuals know better than the government how and when to spend their money, and should be left alone to make their own decisions.
Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What can the U.S. government do today to prevent a crisis from happening when interest rates go up?
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Archived from the live Mises.tv broadcast, this lecture by Walter Block was presented at the 2011 Mises University in Auburn, Alabama.
February 08, 2011 – Congressmanjoins Larry Kudlow to discuss the agenda for the Subcommittee on Monetary Policy’s hearing on February 9th. He compares and contrasts his own viewpoints with those of Congressman Paul Ryan, Chairman of the House Budget Committee. explains that interfering with interest rates is adverse to a truly free market and can be attributed as the cause of our economic problems. The subcommittee meeting will evaluate relationships between monetary policy and unemployment.
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CASE PAGE: https://www.ij.org/1227
The Institute for Justice is asking the U.S. Supreme Court to review and reverse a decision of the Ninth U.S. Court of Appeals, which upheld Arizona’s system of financing campaigns that uses taxpayer money to punish traditionally funded candidates and independent speakers. The case involves the “matching funds” provision of Arizona’s so-called “Clean Elections” Act. The case (Arizona Freedom Club PAC v. Bennett) seeks to vindicate the rights of independent political groups and candidates who do not take taxpayer funds to speak freely during political campaigns without having the government attempt to “level the playing field.”
Peter Schiff discusses the dollar, trade wars, and the necessary measures to restore a healthy economy.
An Important Message From The Staff of Camp Politics:
Our mission is to train your son or daughter to win political office and then stay there – mainly by using campaign finance laws to suppress political speech that threatens their reelection.
But, unfortunately, many in the public have the absurd idea that free speech should receive the full protection of the First Amendment. One of the chief proponents of this view is the Institute for Justice. It just launched its “Citizen Speech Campaign,” which it calls “a multi-state effort to restore full protection to political speech about candidates and ballot issues.” If you truly care about your children’s future as successful incumbent politicians, please do not allow the Institute to dissuade you from sending them to Camp Politics.
Learn more about the Institute for Justice’s Citizen Speech Campaign.
Buy your Camp Politics T-shirt today: http://iam.ij.org/bTNbXY
Narrator: Steve Izant
Counselor: Nick Hanson
Kids: Sophia Cabana, Zachary Cabana, Nicky McBroom, Sam McBroom, Julia
Simpson, Kate Simpson, Natalie Simpson