The Phony Debate on Fiat Money: Rules versus Discretion | Joseph T. Salerno

[@DrProgNerd]

Most people seem to think that 'price inflation' is a mystical force that arbitrarily appears. Virtually everyone's grandparents have a 'I used to get an ice cream for a nickel' story - but it doesn't make them wonder why they now get less for more money. The proponents of the $15 minimum wage - because they 'need a living wage' - have it backwards. They don't need more money, they need the money they have to hold more value. If money is the representation of value created through production - but the government/Fed - can conjure money out of thin air - we all lose - because this 'representation of value' has been corrupted. These misesmedia videos should have millions of views. I wish people would become more concerned about economics.

[@dameanvil]

00:00 🙏 The lecture is sponsored by Wilfried and Barbara Puscher for their generous support. 00:16 💸 Inflationism is the prevailing ideology in governments and central banks, based on the belief that free market forces lead to deflation, recession, and unemployment. 00:30 💰 Monetary policy involves increasing the money supply to lower its purchasing power, aiming to raise prices above market-determined levels. 00:43 🔄 There's ongoing debate on whether monetary policy should be discretionary or rule-based, with some advocating for legislated rules. 01:08 📜 Some argue rule-based monetary policy is superior for managing the money supply, but this overlooks the inherent impact of creating money in the first place. 01:50 💹 Both rules-based and discretionary approaches seek to establish a lower purchasing power of money than what the market would naturally determine. 03:00 🏛️ The speaker contends that rules-based monetary policy not only fails to constrain inflation but normalizes and institutionalizes it. 04:10 💡 The crucial debate lies not in technicalities, but in ideological stances: inflationism versus anti-inflationism. 06:17 🔑 Ideological shifts, as seen in history, can lead to changes in economic policies, even under a fiat money system. 08:47 💼 Eisenhower's administration took a strong stance against inflation, even amidst recession, demonstrating the influence of anti-inflationism. 12:38 📊 The Eisenhower Administration emphasized the importance of a balanced budget and fiscal restraint to combat inflationary tendencies. 16:04 🔄 Eisenhower's policies saw a shift from the inflationary strategies of previous administrations towards a more anti-inflationary stance, signifying a significant ideological change. 23:38 📉 Eisenhower's policies led to declines in defense spending, increased fiscal restraint, and a generally low inflation rate, resulting in a stable economy during his tenure.

[@kamilziemian995]

Thank you.

[@EndoftheBlock7224]

I'm extremely frustrated that this is not more common knowledge and in all actuality this is understood by almost none

[@nsfmatt]

Is there any hope of returning to sound money and sincere pursuit of anti-inflation? I can’t say I am encouraged, given that fiscal and monetary policy are necessarily inflationary. Market-based money supply must become the norm, and government spending must be reduced, to have any hope of combatting today’s runaway inflation.

[@EndoftheBlock7224]

There is ZERO hope as long as we are Socialist and we are VERY Socialist

[@delicheres]

As long as people are asking for more benefits from the state and politicians want to be elected or re-elected it’s just impossible ! Moreover if you combine that general tendency with Marxist idea of progressive income tax you realise that inflation is unavoidable unless a complete control of wages, retributions and prices by the state 🤷🏻‍♂️