An Economy of Liars | Gerald P. O'Driscoll Jr. | Cato Institute: Commentary

An Economy of Liars | Gerald P. O'Driscoll Jr. | Cato Institute: Commentary: "Ludwig von Mises, predicted in the 1930s that communism would eventually fail because it did not rely on prices to allocate resources. He predicted that the wrong goods would be produced: too many of some, too few of others. He was proven correct.

In the U.S today, we are moving away from reliance on honest pricing. The federal government controls 90% of housing finance. Policies to encourage home ownership remain on the books, and more have been added. Fed policies of low interest rates result in capital being misallocated across time."