Comment Re:Differing opinion (Score 0) 1539
However, controlled inflation is good for the economy; it drives future investment. Furthermore, it reduces the burden of debt service many individuals and businesses will have to pay.
What? Inflation is a tax on the people. The only thing inflation does ("controlled" or not) is take money out of the hands of the people (out of their savings).
I believe Friedman and Schwartz conducted an extensive study showing that there is no correlation between strong economic growth and inflation in a free market (but a strong correlation between government spending and inflation -- shocking, right?)
Controlled inflation is a cute little idea started by Keynes. Government spending would be fine if it enhanced the production of private sector goods and services at a reasonable cost, ie if it were done efficiently. But that rarely happens when politicians and bureaucrats are involved. Subsidizing inefficient industries is one example, and war is an extreme one. Instead, we end up with inflation from too many dollars being printed by central banks.
"Planned inflation" is just like planned drug use. It may work the first time around but you end up needing a bigger and bigger hit to get the same effect the next time around. In short, it doesn't work.
What? Inflation is a tax on the people. The only thing inflation does ("controlled" or not) is take money out of the hands of the people (out of their savings).
I believe Friedman and Schwartz conducted an extensive study showing that there is no correlation between strong economic growth and inflation in a free market (but a strong correlation between government spending and inflation -- shocking, right?)
Controlled inflation is a cute little idea started by Keynes. Government spending would be fine if it enhanced the production of private sector goods and services at a reasonable cost, ie if it were done efficiently. But that rarely happens when politicians and bureaucrats are involved. Subsidizing inefficient industries is one example, and war is an extreme one. Instead, we end up with inflation from too many dollars being printed by central banks.
"Planned inflation" is just like planned drug use. It may work the first time around but you end up needing a bigger and bigger hit to get the same effect the next time around. In short, it doesn't work.
