ninurta wrote:History has shown us that the more the government controls or is involved in the economy, the lower the currency value is, the higher the inflation, the more economic baggage their is restricting the system. For example, when in a down economy, countries such as Zimbabwe, pre-ww2 germany, and other countries increased their currency, and as a result it's value kept dropping.
Now, if we had left those economies and let them fall and fail, eventually natural growth does indeed return on its own. Though I guess you'll need to understand more about the buisness cycle to understand the way the system bounces back, its the same as when you create a bubble, people start spending again, but except its not a bubble
Yes, in the case of Germany, natural growth produced Adolph Hitler, and he solved the problem with massive controls on the economy. You are back to making dogmatic statements about subjects of which you know very little. Germany didn’t choose to devalue her currency. World War I forced most of the combatants off the gold standard. Then the victors in World War I waited until after Germany had disarmed herself in compliance with the Armistice and demanded massive reparations for the war. At least France and England did. After Germany found the amount beyond the limits of her economy and stopped payment, France invaded Germany in 1923 while she lay helpless. It was an atrocity, but every now and then, France becomes a bit irrational. The consequences of the invasion were disastrous, not only for Germany, but for France as well. France’s currency fell to half it’s value due to the invasion. The rest of Europe suffered as well and finally France pulled out, but not before spawning Adolph Hitler. The resulting hyperinflation in Germany was not due to policy but circumstances. The circumstances being mainly due to France and England’s short sighted greed and stupidity.
Yes, hyperinflation is a danger with fiat money, but all of the world is on the damn stuff now. However, bimetallism has a few problems as well.
Yes I guess I have to learn a lot more about economics, but somehow, I usually find something else a lot more interesting to learn, like history.
ninurta wrote:Another example of how I know that the less fettered it is, is by america itself. Before minimum wage, there was more jobs and more money to be earned. As well as when we got off the gold standard and started using papermoney. I know its not actually made out of paper, thats beside the fact. These are some things began by the government to "help" the economy, but apparently it didn't. More government involvement, the forcing companies to pay a minimum wage, all lead to what we have now with constant high unemployment, shipping of jobs over seas, and really bad economic downturns
That kind of goes back before your time, now doesn’t it? However, it doesn’t go back before my time. I think we’ve had a minimum wage a lot longer than you think. I think they slapped it on right after World War II. I remember it from when I was a lot younger than you are. I don’t see where it did any harm at the time, and in the Fifties, our economy was pretty healthy. Economic treason came around quite a bit after the minimum wage. The paper money, and it is mostly paper, is fiat money and that was due to the stupidity known as the Vietnam War. Debasement of currency is a standard way for incompetent governments to raise revenue. However you are switching cause and effect to fit your prejudices. You see, I lived through it, so I know which came first. We had some really bad economic downturns before fiat money and minimum wages. However, economic treason, that’s new.
“Make everything as simple as possible, but not simpler”, A. Einstein
“As far as the laws of mathematics refer to reality, they are not certain, and as far as they are certain, they do not refer to reality.” A. Einstein.