Ultimately, interest rate caps would cost Americans access to a convenient and reliable source of credit. Instead of saving them money, a rate cap would push consumers into worse credit options.
While Austrian economists have engaged Modern Monetary Theorists on economic terms, one should not forget that this theory promotes totalitarian governance.
The MMT crowd now claims that the monetary history of the US is an example of chartalism. US history is actually an example of the opposite.
William Nordhaus coined the term “Political Business Cycle” a half-century ago. The idea was that government authorities, particularly the central bank, would manipulate the economy to correspond with election cycles, a practice that continues to this day.
Mainstream economists define inflation as the increase in an imaginary “price level” that is relatively neutral in its effects. Austrian economists, however, know better, as they realize that the effects of inflating the money supply are anything but neutral.
The Trump White House has enacted tariffs in the belief that other countries are “cheating” by enacting tariffs against US goods and “manipulating” their currencies. However, with the US dollar being the world's reserve currency, the US has engaged in dollar manipulation through inflation.
Mark Thornton cuts through the noise to explore the real economic threats facing America.
Trump has tried to claim that he favors "Main Street over Wall Street." Unfortunately, by pushing aggressive low-interest-rate monetary policy, Trump has put himself squarely in the camp of “Wall Street over Main Street.”
Dr. Gordon reviews Quinn Slobodian‘s latest book trashing the Austrians, especially Murray Rothbard. Not surprisingly, Slobodian shows little understanding of the Austrians and economic history.
Fiat money and state coercion have prevented us from seeing the threat to our well-being that would be apparent with sound money and true liberty.
