Tuesday, March 12, 2024

A Political Note

For those on CNN and MSNBC who repeatedly wonder why no one appreciates how great the Biden economy is...

and setting aside my ordinary response BECAUSE THE ECONOMY ISN'T GREAT...

there is this statement from J. M. Keynes, quoted by Milton Friedman in chapter 8 of Money Mischief:

There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction ...

Keynes said it, and Friedman quoted it. That makes the statement twice as valuable, no matter which side you're on.

1 comment:

The Arthurian said...

Hint: Inflation -- debauching the currency -- is not the problem. It is a result.

People don't like inflation; Biden gets the blame. (That's the answer to the political question.)

People don't like inflation... Inflation is a problem for people... Inflation is not a problem for the economy.

People don't like inflation, so governments try to stop inflation. Governments do try to solve problems for people; this I believe. Governments do things that change the economy, to reduce or eliminate for example inflation (so that the people will be happy with their government).

Inflation is a problem for people... Inflation is not a problem for the economy... For the economy, inflation is a solution to some other problem. If at this point you say, "What other problem?" I congratulate you. You are off to a good start.