The House that Uncle Sam Built


Steve Horwitz and Peter Boettke have recently completed The Great Recession of 2008, a short and simple study of the most recent recession.  The following is a short analogy that appears at the beginning of the piece:

 The man who parties like there is no tomorrow puts his body through an “up” and a “down” course that looks a lot like the business cycle. At the party, the man freely imbibes. He has a great time before stumbling home at 2:00 a.m., where he crashes on the sofa.  A few hours later, he awakens in the grip of the dreaded hangover. He then has a choice to make: get a short-term lift from another drink or sober up. If he chooses the latter and endures a few hours of discomfort, he can recover. In any event, no one would say the hangover is when the harm is done; the harm was done the night before and the hangover is the evidence.

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