Ben Bernanke Cloning Karl Marx

For a boy from South Carolina, Ben Bernanke has an impressive resumé. He was educated at Harvard, MIT and taught economics at Stanford. He has added contributions to the likes of Milton Friedman and Anna Swartz. Bernanke is listed in the top  top 20 authors of all time in academic economic journals despite having been out of academia for almost a decade.  He was author of the prestigious American Economic Review and his face graced Time Magazine.

The problem with Bernanke is that he is Marxist in his thoughts on the declining economy. He thinks deflation is bad. If deflation happens he will use weapons of mass economic destruction to stop it i.e. the printing press. In reality, deflation of prices is a normal aspect of the market economy as the production of goods outstrips the production of money. The result is higher real wages in a growing economy. The healthiest of economies will exhibit falling prices.  Historically, declining prices are not related to economic recession or depression, according to studies in the American Economic Review.  For a full discussion see Von Mises Institute .