Aid or capitalism?

No one contests that what makes hundreds of mil­lions in Asia and Africa destitute is that they cling to primitive methods of production and miss the benefits which the employ­ment of better tools and up-to-date technological designs could be­stow upon them. But there is only one means to relieve their distress—namely, the full adoption of laissez-faire capitalism.

... says Ludwig von Mises in The Anti-Capitalist Mentality (section 4). And how true! Since he wrote this (in 1956), Asia has increasingly coupled itself to the world market, and poverty is there on the run. Africa, however, still more or less clings to socialism, and remains poor despite massive foreign aid and relief. The problems of socialism (poverty, death) can only be relieved by the abolition of socialism.

Time to abolish the State?

The last few centuries were times when men tried to place constitutional and other limits on the State, only to find that such limits, as with all other attempts, have failed. Of all the numerous forms that governments have taken over the centuries, of all the concepts and institutions that have been tried, none has succeeded in keeping the State in check. The problem of the State is evidently as far from solution as ever. Perhaps new paths of inquiry must be explored, if the successful, final solution of the State question is ever to be attained.

... says Rothbard in Anatomy of the State. And he is right. Men have tried to reign in the State with all sorts of methods, but have proven unsuccessful. Perhaps it is time to consider abolishing it altogether? Or just embrace socialism. Many seem to have taken that path.

Worst crisis ever?

The 1920s bust was actually worse than the 2000 dot-com bust. In 1920 unemployment jumped from 4 percent to nearly 12 percent and GNP declined 17 percent; however

1. there was no fiscal stimulus,
2. the budget was cut nearly in half and the national debt was cut by one-third,
3. tax rates were significantly decreased for all groups, and
4. the Federal Reserve did next to nothing.

As a consequence, by 1922 unemployment was down to just under 7 percent and declined to 2.4 percent in 1923. (#)

There you have it. How does a politician fix a crisis? Answer: Do nothing (except cut the government budget and lower taxes).