![“Business and Credit” via Mises.org:
I’ve been amazed at the sheer numbers of otherwise sensible people who seem to be under the impression that paper credit—not savings and capital—is the key to capitalist success. It’s as if the core message of the Austrians has not stuck at all, and many capitalists themselves have bought into the line of the Keynesians and others who believe that productivity itself will dry up in absence of low-price lending for all. If banks “hoard” their resources, we will all be back to the stone age, or so they claim.
There are times to defend credit, as when government is trying to crack down on payday lending or trying to regulate credit instrument exchanges in the securities industry, and times to put matters in perspective and point out that credit must be built on a foundation of deferred consumption and savings.
[photo source]](http://30.media.tumblr.com/Anhohk1saeomgecwniqDM3hho1_400.jpg)
“Business and Credit” via Mises.org:
I’ve been amazed at the sheer numbers of otherwise sensible people who seem to be under the impression that paper credit—not savings and capital—is the key to capitalist success. It’s as if the core message of the Austrians has not stuck at all, and many capitalists themselves have bought into the line of the Keynesians and others who believe that productivity itself will dry up in absence of low-price lending for all. If banks “hoard” their resources, we will all be back to the stone age, or so they claim.
There are times to defend credit, as when government is trying to crack down on payday lending or trying to regulate credit instrument exchanges in the securities industry, and times to put matters in perspective and point out that credit must be built on a foundation of deferred consumption and savings.
[photo source]
