Currently the world is on a fiat money standard—a government-issued currency that is not backed by a commodity such as gold. The fiat standard is the primary cause behind the present economic instability, and is tempted to suggest that a gold standard would reduce instability. The majority of experts however, oppose this idea on the ground that the gold standard is in fact a factor of instability.
Bertrand Russell is one of the greatest philosophers of the twentieth century but isn’t usually studied as a social or political philosopher, though I am hardly the first to think that his contributions to these areas are underrated. He did not support the free market but nevertheless had much to say about the state that readers of the Mises page will find congenial, and I’d like in this week’s column to look at some of his comments on this topic in his Principles of Social Reconstruction (1916).
Now that interest rates are rising with much further to go, the global banking system faces a crisis on a scale like no other in history. Central banks loaded with financial securities acquired through QE face growing losses, and their balance sheet liabilities are now significantly greater than their assets—a condition which in the private sector is termed bankruptcy. They will need to be recapitalized urgently to retain credibility.
We are now well past the corona crisis of 2020, and most of the restrictions around the world have been repealed or loosened. However, the long-term consequences of arbitrary and destructive corona policies are still with us—in fact, we are now in the middle of the inevitable economic crisis.
The increased division between people based on political affiliation has been recognized by many and has frequently been attributed to technological developments. Outlets like Facebook and Twitter are blamed for increased hostility, disinformation, and hateful attitudes spreading across the political discourse. But maybe politics has itself to blame.
Following the tragic events of Uvalde Texas, the whole country saw a disgusting act of senseless killing, and the police waiting outside as it unfolded. This article has a purpose to discuss police ineffectiveness in situations where they’re expected to serve and protect, and how private police companies are superior to government funded police departments.
Thomas Sowell wrote in “Basic Economics” (p.59) how prices lead people to take more risks as they have an incentive to make profit. He writes:
