Perhaps John Maynard Keynes' best con job was convincing people that a growing economy needs inflation, lots of inflation. As David Gordon points out, however, Ludwig von Mises eloquently explained why inflation undermines the free market economy.
Beef prices are rising again because of government intervention in the monetary system and in regulation of the beef industry. As American beef consumption falls, the entire industry is in trouble.
Modern Monetary Theory is a perfect example of, “Do as I say, not as you do,” rather than, “Do as I say, not as I do.” MMT rightly points out some hypocrisy, but wants to replace it with more hypocrisy.
Hans Hoppe recently criticized Argentina‘s President Javier Milei for not closing the country‘s inflationary central bank. In response, Milei claimed that doing so would result in hyperinflation. Given the central bank prints lots of pesos, shutting it obviously would decrease inflation.
One of the fallacies pushed by monetary economists is that a growing economy needs a growing supply of money in order to prevent deflation, which they claim is as harmful as inflation. However, as Austrians point out, there is no “optimum” amount of money in the economy, since prices adjust.
President-elect Donald Trump has declared that he will raise tariffs his first day in office. Our economy, however, does not need government-created roadblocks to trade. Instead, we need free exchange and sound money.
The child-like obsession with buying stuff that American society is often criticized for around Christmas is a sought-after result of our government’s monetary policy.
It‘s obvious that a new influx of money will not immediately bring about changes in enough prices to significantly alter a price index. Even so, there are immediate effects of the new money.
Mainstream economists define “inflation” as general increases in consumer and producer prices. Yet, such a definition misses why prices increase in the first place and why inflation should be described as an artificial increase in the money supply.
Economist Jonathan Newman joins Ryan to discuss how deficit spending and runaway debt is causing price inflation and higher interest rates.
