A Quote by Friedrich August von Hayek

To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about.

Friedrich August von Hayek

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About Attempt Brought Combat Credit Cure Depression Evil Expansion Forced Means Very Very Mean Which

Quote Author

Friedrich August von Hayek
Austrian - Economist
May 8, 1899 - March 23, 1992

To combat depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection -- a procedure which can only lead to a much more severe crisis as soon as the credit expansion comes to an end.

Friedrich August von Hayek

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

Ludwig von Mises

Credit expansion can bring about a temporary boom. But such a fictitious prosperity must end in a general depression of trade, a slump.

Ludwig von Mises

Depression is the aftermath of credit expansion.

Ludwig von Mises

One day, because they realize for some reason or other that they must stop credit expansion, the banks do stop creating new credit to lend. Then the firms that have expanded cannot get credit to pay for the factors of production necessary for the completion of the investment projects which they have already committed themselves. Because they cannot pay their bills, they sell off their inventories cheap. Then comes the panic, the breakdown. And the depression starts.

Ludwig von Mises

Since the eighteenth century the immense expansion of the worlds wealth has come about as a result of a correspondingly immense expansion of credit, which in turn has demanded increasingly stupendous suspensions of disbelief.

Lewis H. Lapham

When one has once accepted and absorbed Evil, it no longer demands the unfitness of the means. The ulterior motives with which youabsorb and assimilate Evil are not your own but those of Evil.... Evil is whatever distracts. Evil knows of the Good, but Good does not know of Evil. Knowledge of oneself is something only Evil has. One means that Evil has is the dialogue.... One cannot pay Evil in installments--and one always keeps on trying to.

Franz Kafka

Government policies try to prevent the emergence of serious unemployment by credit expansion, i.e., inflation. The outcome was rising prices, renewed demands for higher wages and reiterated credit expansion; in short, protracted inflation.

Ludwig von Mises

True, governments can reduce the rate of interest in the short run. They can issue additional paper money. They can open the way to credit expansion by the banks. They can thus create an artificial boom and the appearance of prosperity. But such a boom is bound to collapse soon or late and to bring about a depression.

Ludwig von Mises

You can get a lot done when you don't care about credit. My name was not on Medicaid expansion, but it never would have happened without the work that I did. The best leaders are the ones that want results, not credit.

Gretchen Whitmer

There are many misconceptions about depression-mostly negative. Unfortunately, because depressed people think negatively about depression and its treatment, they don't get help, which allows the depression to worsen, which leads to more negative thinking, which produces a vicious cycle of suffering.

Peter McWilliams

Shakespeare very rarely makes the least attempt to surprise by his catastrophes. They are felt to be inevitable, though the precise way in which they will be brought about is not, of course, foreseen.

Andrew Coyle Bradley

He who laughs does not believe in what he laughs at, but neither does he hate it. Therefore, laughing at evil means not preparing oneself to combat it, and laughing at good means denying the power through which good is self-propagating.

Umberto Eco

What is needed for a sound expansion of production is additional capital goods, not money or fiduciary media. The credit expansion is built on the sands of banknotes and deposits. It must collapse.

Ludwig von Mises

I love the Hunger Games books. Certainly, the fans are there. They're grown enormously since the beginning. When I first brought the books to Lionsgate, they had sold about 150,000 copies, which is a very good result for a YA book. And to their credit, Lionsgate was very excited and committed to the movie, from the beginning.