TD₿: Why the State Demands Control of Money by Hans-Hermann Hoppe
TL;DR Without costs and no personal risk of losses, the State can give money indiscriminately, to everyone and for any purpose, without concern for its productiveness or return on investment.
Hey Bitcoiners,
A lot of criticism gets thrown the Federal Reserve’s way for the current inflation and for good reason, but in my opinion, not enough attention is focused on government spending.
Fiscal policy has been a major driver of the high inflation we have observed over the past couple of years. Our government has a spending problem…it’s that simple.
The U.S. government has run a budget deficit nearly every year since the 1960s. The last time we ran a budget surplus was in 2001 when Clinton was in office.
It’s important to note that spending in and of itself isn’t a terrible thing…as long as the money is allocated into wise investments and infrastructure that provide a return on investment and benefit society.
The problem is the government’s track record as a capital allocator is atrocious. Most of the money spent today goes to existing entitlements or is wasted on unproductive projects. All this government spending does is waste taxpayer money, devalue the dollar, and stoke inflation.
I’m reminded of this today because Congress just passed a bill named the “Inflation Reduction Act” which we are led to believe will help reduce inflation by, ironically, printing $750 billion.
Of course, this bill will do nothing to reduce this inflation. Instead, it will no doubt hurt the middle class even more. Check out the tweet below that delves into some of the specifics of the bill.👇
Governments don’t seem to understand that it is their spendthrift nature that’s a big contributor to the inflation Americans are currently struggling with.
Austrian economist Hans-Hermann Hoppe wrote this piece that went into how excessive government spending is counterproductive and why capital investment should be left to the free market in this piece.
As the saying goes, the most terrifying words in the English language are – “I'm from the government, and I'm here to help!”
Tick tock next block,
Cory Klippsten
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“I’m old enough to remember when $1,000,000,000,000 of government spending & money printing seemed like a lot. Bad for USD holders. Good for Bitcoin.” - Eric Weiss, CEO of Bitcoin Investment Group
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