Market economies are not only efficient but just, founded on individual liberty, division of labor, and private property. Free markets produce every product and every service desired. Free markets distribute all products and services through voluntary exchanges.
Centrally planned economies all experience problems caused by government interventions and controls. Our centrally controlled money system- our monopoly cartel called the Federal Reserve - has delivered reduced purchasing power per money unit every year since 1914. The Fed’s mandate was to stabilize the dollar. The dollar had been stable for seven generations. Then, with the Fed in control, the dollar (by 2015) has lost 98% of its purchasing power.
Inflation is an increase in the money supply. Our money supply since 1971 has been pure fiat paper. It is easy to print or digitize. Commercial bank credit expansion of our fiat money supply, which is not backed by private pools of savings, is the cause of booms which must lead to busts. However, there is enough gold and silver to create a worldwide monetary system any time that such a hard money movement will lead us back to sound money.
Presented to homeschool parents and students on 29 September 2006 at the Mises Institute in Auburn, Alabama.