I ran across this guy, Peter Schiff, yesterday, and he makes so much sense it’s a little scary. He is one of the only economists who predicted an economic crash due to the housing bubble.
You can spend a really long time watching his videos on YouTube, but let me boil down what I know about his positions:
- America needs to focus on productive, profitable companies and rebuild companies that add value to our everyday lives. For too long we’ve focused on pretend, service industry jobs which wheel and deal in the financial sectors of our economy. They are jobs of manipulation, not jobs of creation. They are jobs which, if the ceased to exist tomorrow, would not rattle the very fabric of human-kind.
- Our economy is like a heroine addict. We keep putting off rehab by giving ourselves ‘injections’ of captial – fake money which is mean to give us a quick fix rather than actually solving the addiction and getting the bad stuff out of our system.
- Companies who are in trouble deserve to fail. Letting the automakers or insurance companies will not be the end of the automotive industry as we know it. The factories wouldn’t stand still long. It would only take long enough for a new corporation to be set up, free from the liabilities of the old ones, to build itself from the ground up, making a profitable business model.
- The government is partially at fault for fueling the consumer economy, encouraging unreasonable housing prices, and ignoring economic best practices and free-market policies.
Now, the guy gets a little extremist/absolutist when he starts going down the path of complete financial armageddon, but if you take away the shrillness & alarmism, overall he strongly reflects my economic views.
If you are going to watch one of his videos, watch this one:
He makes a lot of great points in this video:
- real estate is a place to live, not an investment
- companies that make money trump companies that do well in the market
- you can’t go back to sound lending practices and keep bubble pricing
- work is to produce value, not to just have a job