Saturday, August 20, 2011

Linh Dinh (and Wilhelm Röpke) on the Evil of Inflation

    Inflation is your dollars deflating. It’s your money going down, down, down, depreciating as the Federal Reserve injects more bucks into our banking system. And since the biggest banks own the Federal Reserve, the Fed is the banking system. Each time these banks give cash to themselves to be lent to you at interest, your dollars become a bit more worthless.
Rightly explains the leftist Common Dreams writer in his exposé of a self-described "independent entity within the government, having both public purposes and private aspects" — Looting Frenzies: Thinking about the Federal Reserve while Nursing a Cheap Beer.

That succinct definition brings to mind this blogger's favorite economist, Wilhelm Röpke, who, the Ludwig von Mises Institute's Shawn Ritenour reminds us, identified "inflation as a primary source of social decay" — Biography of Wilhelm Röpke (1899-1966): Humane Economist. An essay by the man himself — "Repressed Inflation": The Ailment of the Modern Economy.


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Blogger Mark in Spokane said...

Inflation erodes social capital and undermines virute because it punishes thrift and rewards prolifigacy. Why save money today when that money will be worth less tomorrow? Spend it now while it still has its current value. This erodes not only the virtue of thrift, but of the ability to delay gratification. It creates a cascade of problems regarding planning for the future, the exercise of personal restraint, etc. Bad news all the way around.

August 20, 2011 at 2:12 PM  
Blogger Dauvit Balfour said...

Could you recommend a good introduction to Roepke? I'm working my way through Rothbard's History of Economic Thought right now and am looking for something to read next.

August 22, 2011 at 7:46 AM  
Blogger Iosue Andreas Sartorius said...

His "Humane Economy" is very accessible.

August 22, 2011 at 4:44 PM  

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