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cem
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Is sound money an unsound idea?

- George F. Smith - Barbarous Relic

"Assume that the government decides to construct a road. Rather than levy taxes to meet the expense, public officials simply start up the printing presses and run off some currency. Everyone seems to benefit. Workers get jobs. The community gets a road. No one had to pay for it. It seems like “magic.” (pp. 31-32)
But magic of this sort is just sleight of hand.It confuses money with wealth."

Well ...

When a road gets built; workers get paid for their labour. Labour is the source of wealth creation. So, when a road gets built "wealth" created and paid for. No magic here, nor confusion as you suggest. Your point of "confusion of money with wealth" comes about when "no wealth producing" efforts, and even worse, "wealth destructing" actions of governments are financed by currency printing machine.

Commented 3681 days ago

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Beginning of the headline :Governments hate sound money.Even worse, people hate sound money.Governments hate it because it puts severe limits on what governments can do.People hate it because it would mean taking responsibility for their own lives, relying on their resourcefulness instead of the government.Sound money can’t be printed, and governments that can’t print can’t buy as many votes.They tend to let the chips stay where they fall. On a free market sound money is democracy in action. As Mises wrote, it is the m... Read More

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