Marxism Unmasked from Delusion to Destruction.pdf 7471KB

MONEY. INTEREST. AND THE BUSINESS CYCLE
is adang for moiv and morr crcdic. Either (1) the banks grant
thtf demand by creadng morr and morr crrdit (thn happened in Germany
m 1923. when it led to a complete brcakdou-n of the currency). Or (2) one
clay, because they realize for some reason or other that thex* must stop crrdit
expansion, die hanks Jo stop creatmg new credit to lend. Then the firms
that haw expanded cannoc get credit to pa>' for the faaors of production
nccesiury for the completion of the imrument projects which they have
jlrcady ccmmtitied ihemseUrs Because ihe>- cannot pa>- their bills. the\'
vrll off their inventories t heap 1 hen coines the panic, the breakdown. And
(lir deprension starts
On account of the crrdii expansion the whole economic swem of the
< (Hiniry or of the world is m the sttitation o( a nun who has a limited
Mipply of building maiertaH as-ailaNe and ^-ants to construct a home. Hut
l>eing poor in technologual lalculatiom. he nukck Mmie nu%iakc% He
(hink% he tan build a bigger hcnive out of his hmiied supply of building
tiuierult than lie rralK- can Ihereforr. he uarti b>- conitructing too large
J foundation Only later doet he divccnrt flut he hat nude a tnivtake and
(lut he cannot finish the house in the was- he had intended I hen he niu%(
either abandon the i*'h(4e pfsi>|ect. at use the ituiertal% \till as-aibble to
Iniild a uiuUer house, leasing part €i( the foundation uinited I hit it the
\ituafion in which a lounirs- or in whuh the ts-orid findt i!\elf at the
cnii ol a criMs caused bs- cretht expansion llecaute ol the eaty credit
Inisinessmen make mtuako in their etommiic cakubti«>nt and find
themselsTs ssnch owrr-amhificnn plam which cannot be completed because
of msufhcieni factors of production
In esTTS- bcKNit period ilui ptrcedo a crisii. in (irrat Britain and then
later m other parts ol the uxwid, indeed, in esvrs tounirv in the world
which has experienced cmht expaimon. \x»u aluast find people wht) have
uid. "Thn IS m)t a bottni that v^ill be IciUotsed b\ a critit. only people
who do not knou' what n going on can us such a thing Hiit it the final
prosperity*—^an esrrlasting pnnperirv We t»-ill nesrr again hasr such a
crisis." The morr people beliesr in thit Uogan of esTrlatting pn>tpenty. the
morr desperate they beccnne when they diumrr that the "eserlatiing"
pio^>erir>- doesn't latt li»rrsTt
One thing that nude nutters t*wse foUmving l''2*>. than in preceding
periods of depression, wa* that the Anier u an uniont were really very
pOMsrriul and they \sx>uld not tolerate that the crisis thould bring about
those results which t*rrr the conset^uence of earlier cnset in this country
and in other countries—i.e.. they wxHild not tolerate a considerable drop
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