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NOTE How can government promote recovery from recession?

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As a matter of fact, the only thing that government can do, and it positively promotes, in the Austrian view, to promote a recovery, is to speed up the recession.

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The only way the government can speed up the recession is to cut the budget, cut its own budget.

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If it cuts its own budget, it stimulates saving, which you need, in other words, in depression, is more saving and not less.

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You need more saving to try to validate these investments that have been over-investments in capital goods.

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And so the only contribution the government could possibly make, in addition to keeping its hands off the midst of everything, is to cut its own budget.

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Can you imagine the chances of that these days?