I don’t know about you, but I think I slept through Economics. Actually, I’m not sure I ever had such a class in high school and never got it in college. So, with all of this guff about money in the news, I wanted to know some more. A friend and I were discussing the value of the gold standard and whether it was even possible to return to a true gold standard and consequently have a hard currency. He pointed me this book by the late Rothbard.
Rothbard is called a Libertarian because he believes that the free market works and that government should stay out of our lives. With that definition, I guess one could define me similarly (though true Libertarians and I disagree on quite a bit). Unfortunately, the label of Libertarian prevents people from bothering with Rothbard’s work. That’s a shame, because unlike Keynesian philosophy (as exemplified by President Obama and the Treasury Secretary) teaches that controlled inflation is good and that the government can buy its way out of economic downturns. That’s a very illogical idea and Rothbard demonstrates it exceedingly well.
Some people are going to stop reading this review now. Please don’t. Hang in a little longer.
As I said, money/economics is not my strong point. I get easily confused when they throw the terms around. Still, with all of this stuff about bailouts for fiscally foolish decisions and such, I wanted, rather *needed* to know more. So, I decided to listen to this book.
Rothbard was a professor and I wish that I had been a student of his. He explains in simple terms so that even I could understand the foundation of the free market system. He leads you through the Bretton Woods agreement, to the final dissolution of the gold standard. When you are finished with this book, you may still agree with the bailouts, but you will have a new perspective on them.
Spend the time and work through this. The recording is high quality and free. There is a PDF and so forth. Spend some time and tell me what you think.
Personally, I oppose the bailouts because its an artificial construct based on theft. The theft: inflation. Rothbard explains this so clearly, but let me attempt to explain it. There are three ways for a government to acquire money: steal it by force, tax it, and inflate it. You understand the first two. Suppose that there was $100 in the entire economy and you had $10 (wow! You’re rich!). Then government printed an additional $10. Now there is $110 in the economy and every dollar has been devalued by 10%. Your $10 is now worth $9.
That’s inflation and that’s theft.
Read this and let me know what you think. If nothing else, listen through the history of currency and the free market (the easier first half). That will be worth your time.