Recessions: Market Cures And Central Banking Sugar Pills

What Austrian-school economics identifies here, however, is that the above recessions tend to be amplified and exacerbated by government attempts to help. Stimulus efforts tend to be counter-productive since governments naturally attempt to prop up existing businesses and existing sectors. What this inevitably does is choke off the entrepreneur from the necessary land, labor and capital to form a more valuable business is tied up in a government-subsidized Zombie Company. It’s in the attempt to avoid the inevitable recession where the problem is lengthened.