How can government promote recovery from recession?

0:00As 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. The only way the government can speed up the recession is to cut the budget, cut its own budget. If it cuts its own budget, it stimulates saving, which you need, in other words, in depression, is more saving and not less. You need more saving to try to validate these investments that have been over-investments in capital goods. 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. Can you imagine the chances of that these days?