Government institutions, including central banks, have long been responsible for increases in the cost of living. But the burden often falls most on those who are just starting out in their adult lives.
Government spending overall—not just deficits—is the real problem. Government spending diverts wealth away from truly productive people and toward the government and its favored groups.
Because banks make unbacked "loans," they create new money that later disappears when repaid. If these loans are not renewed, economic depression sets in.
Allowing the market to operate with minimal government intervention has helped Chile become one of the freest and wealthiest countries in South America, especially when compared to its direct neighbors.
A given goal dictates the specific means that an individual will choose for the attainment of that end. People make choices that they think will help them achieve an end.
There is productive consumption and there is non-productive consumption. In the Keynesian mind, it's not necessary to produce anything, so long as people spend and consume endlessly, even to the point of destroying real wealth.
Liberalism conceives of freedom as the absence of constraint, but Hegel's definition is more expansive. And, of course, the state is a necessary condition for it.
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