Austrian Business Cycle Part 2 of 3

[LiberalofLiberty]

i'm pretty sure it's pronounced CANE-SIAN but who knows.

[Boozbazz]

Just watched this a second time and it's a very good explanation.

[shakaama]

your premise is flawed, if we're talking about a sane and reasonable merchant.

the sane and reasonable merchant doesn't increase product unless there is a viable need and demand. the prudent merchant welcomes running out of product. the prudent merchant doesn't not welcome wasting tons of product due to expiration of the product.

so your premise is that the idiot merchant over produces. and then the fall out happens.

[Boozbazz]

Fear: Increase production, lower prices, same amount of demand for product, less profit, leftover product, less need for increased production.

Result: Cut back on employee hours, remain same level of production with more efficient methods.

What would you say to dispel this fear?

[shakaama]

part 2

the market takes care of the idiot merchant and the sane and reasonable merchant.

if the idiot merchant is caught in the bubble then unfortunately so does his employees. You don't get rid of the fear, the market simply corrects it. the prudent merchant doesn't live with fear.

if you're in the business of business then you'll have be about the business of taking care of business.