Austrian capital theory and bourgeois paternalism

As pointed out by Lenore Ealy in her recent blog, there is an interesting connection between a couple of articles in the July 10, 2012 issue of The Freeman. One article by Peter Lewin was a critique of Keynesian stimulus/job creation programs from the viewpoint of Austrian capital theory. The creation of capital and enterprises is a roundabout time-consuming process, and cannot be a quick response to a government stimulus program. The other article by Sandy Ikeda makes a similar point with respect to the bourgeois paternalism of government programs to remake troubled communities since “no government can create what can only emerge spontaneously. That includes genuine communities, warts and all, instead of unsustainable projects and ‘Disneyland neighborhoods.’”