The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.
The Great Depression was not caused by laissez faire but by the actions of well-intended politicians and bureaucrats. The Federal Reserve System, after all, was not created in response to the Great Depression, but in 1913. Soon thereafter it began experimenting with its awesome powers, expanding the money supply during the roaring ’20s, propping up the pound sterling in London, extending credit so Europeans could buy American agricultural products. All the while, Congress was becoming more and more protectionist. When the Fed reversed policies in 1929 and actually shrunk the money supply by a third over the next three years and Congress culminated its protectionist tendencies with the Smoot-Hawley tariff, the collapse was underway. The fact that Hoover then raised taxes and Roosevelt kept wages artificially high guaranteed the massive unemployment that marked the 1930s. Government caused and exacerbated the Great Depression.
The economic disasters of socialism and communism come from assuming a blanket superiority of those who want to run a whole economy.
Let us not forget that the cultivation of the earth is the most important labor of man. When tillage begins, other arts will follow. The farmers, therefore, are the founders of civilization.
Hamilton’s whole monetary policy is based on unconstitutional grounds and unsound reasoning, and fraudulent statements. His policies were fought through the whole public career of Franklin, Jefferson, Madison, Randolph, and many another truly great lovers of Republican Government. Continue reading “Fighting the central bank”
To be controlled in our economic pursuits means to be controlled in everything.
Deficit spending is simply a scheme for the hidden confiscation of wealth.
One has to realize that most slumps are caused in the first place by two problems. First the government long ago intervened in the economy to create a financial system (the so-called fractional reserve system) which is inherently unstable. It then compounds the problem by creating far too much money, which enters the economy as debt, and which leads first to economic bubble and then to bust.
Capitalism is the greatest economic system yet devised. It creates prosperity for the most people, and opportunity for everybody.
America is a country, not a spreadsheet. A country puts the needs of its own citizens first.