After quoting H.L. Mencken’s famous quip, “Nobody ever went broke underestimating the intelligence of the American people,” Andrews wonders, “I don’t know if old H.L. was a bookmaker, but he would have been a great one if he had been.”
The critical question is this: Is the Libra really good — or sound — money? Unfortunately, this question cannot be answered in the affirmative.
In every trade, a person is giving up something he values less for something he values more. Every time a shopper buys any item from another person, he has improved his standard of living, and so has the seller.
Since 1900, the number of American farms in operation has fallen 63 percent. Meanwhile, the American standard of living is far beyond what the farmers of yesteryear could have imagined.
An estimated 78 percent of the UK’s working population are unable to make ends meet between pay-days. Neo-Keynesian policies are to blame.
The differences between government stats and reality are a problem, especially since these estimates are used to make policy.
Not only will easy-money policy not increase production, it will impoverish us by inflating away real wealth.
The signing of the EU–Mercosur trade agreement constitutes a starting point — but an unholy alliance between protectionist politicians, agricultural lobbyists, and environmentalists may be forming.
The modern norm is that economic growth causes measured income inequality to increase. But to have greater income equality and greater economic growth. It simply requires more free market policies and less government interventionism.
