"Do You Austrians Have a Better Idea?" - Robert P. Murphy - Mises Institute

"Do You Austrians Have a Better Idea?" - Robert P. Murphy - Mises Institute: "n one sense, the critics are right when they ask, 'Oh, so we should just sit back and do nothing and let the market fix itself?' Yes, that would be a perfectly good idea. The whole reason we are in a recession in the first place is that the capital structure of the economy had become unsustainable due to the Fed's massive credit expansion following the dot-com bust and 9/11 attacks. Resources — most notably, labor — are currently idle, because the economy needs to readjust. Overextended lines such as housing and finance need to shrink, while others need to expand. (And no, I don't know what those understaffed lines are; that's why we have a price system.) Because Americans lived beyond their means for so many years, they now need to live below their means, consuming less while they rebuild their checking accounts and portfolios."

Ten specific proposals are listed in the article.