Learn about the destructive nature of inflation (caused by defective monetary policy) as written by the great Henry Hazlitt:
http://mises.org/media.aspx?action=author&ID=170
Wednesday, February 25, 2009
Wednesday, February 18, 2009
Beware The Cash Monkey: Part 1
"What's in your wallet?"one of television advertising's famous rhetorical questions blares at the consumer. Usually, it is precede by a rowdy bunch of primates making a scene. Eye catching. Funny. Yeah, but what IS in your wallet? ID,photo of loved one, business card, lucky token, plastic cards (credit, debit, gift, discount) and, perhaps, paper currency. A portion of our life in tri-fold form. Of course, the TV is meant to differentiate the product/service offered by the mega-bank to the interested consumer. Yet, the current economic dreariness begs for an answer that requires a bit of philosophical meandering. Let's go visit that place and examine further...
Money and monkey. Two English words that differ by a single letter but have no relation to the other until you mash them up. Just for fun let's use "cash monkey" as we play with this concept. Cash monkey plays fast and loose with reason. Much like the famous TV ads, it goes and wreaks havoc and leaves destruction in its path. Cash monkey says "Let's fix the economy by printing more money. Let's get that money flowing through increased government spending. Let's get create jobs." Cash monkey is making a scene. Unpredictable. Somewhat. Irresponsible. Most definitely. Unethical? Hmm...that's a tough one. If reason plays no role in the cash money's actions, then how exactly should it be judged?
Money and monkey. Two English words that differ by a single letter but have no relation to the other until you mash them up. Just for fun let's use "cash monkey" as we play with this concept. Cash monkey plays fast and loose with reason. Much like the famous TV ads, it goes and wreaks havoc and leaves destruction in its path. Cash monkey says "Let's fix the economy by printing more money. Let's get that money flowing through increased government spending. Let's get create jobs." Cash monkey is making a scene. Unpredictable. Somewhat. Irresponsible. Most definitely. Unethical? Hmm...that's a tough one. If reason plays no role in the cash money's actions, then how exactly should it be judged?
Wednesday, December 17, 2008
Q: Why must the government tax everything?
A: Because it can.
...and the power of coercion is strong. Forget for a moment that we live in a representative democracy and imagine that the political class, an oligarchy, exists to serve its immediate constituencies -- the government worker unions and the deep-pocket elites. Of course, they have to dress up their defense with phrases such as "for the children" or "good-paying jobs" or "cleaner environment". While we're at it, let's dazzle them with big numbers so the public will find no reason but to gawk at the proposed legislation and give tacit approval as if to say "if you say so, then it must be the right thing to do". In any case, once the tax is implemented, it is as permanent as the sun shines. There is no turning back and you can forget voluntarily opting out. Many taxes are compulsory with heavy penalties, usually backed up with serious hardware involving high speed, metallic, miniature projectiles. Score one for big brother. " So, when you get quasi-despots like the New York governor and minions proposing -- in a stealthy trial balloon manner -- tax after tax after tax, what's a guy or gal to do? Therein lies the danger (in Wisconsin winter terms, "thin ice"). When we say we'll tax you 18% on sugary carbonated drinks then end up imposing a 9% fun drink tax (that is, we'll tax you on both carbonated and non-carbonated but just as sugary drinks such as Coke, Pepsi, Hi-C, Kool-Aid, Hawaiian Punch). We'll just get the court jester -- aka mass media hack -- to advertise this as a bargain. They'll get a dude on the street walking away from a vending machine for a quick word of disappointment ("oh, bummer...another tax") then move on to the next pressing issue of the day.
If you are a thinker who is not inclined to dismiss this as another inconvenience but as an attack on liberty then I invite you to explore the world of Austrian economics in all its philosophical splendor at mises.org.
...and the power of coercion is strong. Forget for a moment that we live in a representative democracy and imagine that the political class, an oligarchy, exists to serve its immediate constituencies -- the government worker unions and the deep-pocket elites. Of course, they have to dress up their defense with phrases such as "for the children" or "good-paying jobs" or "cleaner environment". While we're at it, let's dazzle them with big numbers so the public will find no reason but to gawk at the proposed legislation and give tacit approval as if to say "if you say so, then it must be the right thing to do". In any case, once the tax is implemented, it is as permanent as the sun shines. There is no turning back and you can forget voluntarily opting out. Many taxes are compulsory with heavy penalties, usually backed up with serious hardware involving high speed, metallic, miniature projectiles. Score one for big brother. " So, when you get quasi-despots like the New York governor and minions proposing -- in a stealthy trial balloon manner -- tax after tax after tax, what's a guy or gal to do? Therein lies the danger (in Wisconsin winter terms, "thin ice"). When we say we'll tax you 18% on sugary carbonated drinks then end up imposing a 9% fun drink tax (that is, we'll tax you on both carbonated and non-carbonated but just as sugary drinks such as Coke, Pepsi, Hi-C, Kool-Aid, Hawaiian Punch). We'll just get the court jester -- aka mass media hack -- to advertise this as a bargain. They'll get a dude on the street walking away from a vending machine for a quick word of disappointment ("oh, bummer...another tax") then move on to the next pressing issue of the day.
If you are a thinker who is not inclined to dismiss this as another inconvenience but as an attack on liberty then I invite you to explore the world of Austrian economics in all its philosophical splendor at mises.org.
Wednesday, December 10, 2008
Ponder This
"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." -Ronald Reagan
If this makes sense to you, then pass it along. Liberty is not something reserved for the few but to be shared with all.
If this makes sense to you, then pass it along. Liberty is not something reserved for the few but to be shared with all.
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