As a newcomer to the Austrian school of economics and libertarianism more generally I have a couple of questions regarding specific policy approaches a committed and experienced Austrian might take to certain scenarios.
Despite being a citizen of the UK, both the US and UK governments took a similar approach to the financial crisis; fiscal and monetary policy intended on stimulating aggregate demand. The old Keynesian chestnut.
My problem is justifying my gut reaction to the banking bailouts. I would not have rewarded poor banking by granting bankers a bailout. Bad companies with bad practices should fail, it’s a basic tenet of the market.
But what about banks that are apparently “too big to fail”. What do we do about people’s savings when a bank is about to go under?
Do we really allow this to happen? And the detrimental affect it will have on the nation’s finances is ok? How would an Austrian approach this?
I would also like to know what the consensus is on investment. I have modest savings but I am concerned about my governments approach to the economy. I imagine it will not be long before they render my savings worthless and I am curious as to how I can offset this?
Should I invest my meager savings in Gold? Or is there a better solution?
