Tom Hurst writes on liberty, free markets, private property rights, government and the Constitution from Nevada, USA
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ARCHIVE ARTICLE

COMMON SENSE Volume VII: Inflation

"We're Mad As Hell, And We're Not Going To Take It Anymore!"

By Rebecca Iocca & Tom Hurst, 2005

What is inflation? We hear about it, experience it, and are ripped off by it every day of our lives. When businesses raise their prices we vilify them for causing inflation, but, in fact, they are forced to raise prices and are used as a convenient scapegoat by the real perpetrator, the government. Inflation's true cause is the government's ability to create money by simply printing it. This is politically expedient for Republicans and Democrats because they can spend without restraint and run up huge deficits. The laws of economics demand this excess creation of money must go somewhere. Unfortunately, it is unleashed on the unsuspecting and trusting public, us, in the form of higher prices for everything we consume. When the government prints money, it makes every dollar you've earned and saved less valuable because it takes more dollars to buy things. In other words, government-caused inflation acts as both a hidden tax on your earnings and as a thief stealing the value of your savings. That's inflation! Inflation 1800-2000, copyright Harry Browne, www.HarryBrowne.org

The Federal Reserve was created by the Republicans and Democrats in 1913 to keep prices stable by protecting the value of the dollar through the manipulation of the money supply. In reality, the Fed has done the exact opposite. Since its inception, prices have soared over 1,663% and the value of the dollar is now only 2 or so, resulting in a lower standard of living. Compare that to the previous 100+ years when America was on the Constitutionally mandated gold standard, where prices actually went down 30% and our standard of living rose. Which America would you prefer to live in? To protect their hidden tax of inflation and the out-of-control government spending it allows, Republicans and Democrats claim inflation is benign, but is it? The reduced value of your dollars means you must work harder and longer, like a mouse on a wheel. This pressure has forced both parents to work, causing chaos at home and divorce. Socially and financially things will only get worse if we allow inflation to continue. How bad can it get? Historical examples of runaway inflation abound. In 1920's Germany it ultimately took a wheelbarrow of money to buy a loaf of bread. That came about because the German government, strapped for funds, resorted to printing money to pay it's debts. The value of their money fell relative to other currencies, thereby causing higher prices. Does this sound familiar?

How would we stop inflation? It turns out we already have the answer in the Constitution. Our Founding Fathers experienced runaway inflation of the Continental Dollar during the American revolution. There was even a popular slogan at the time, "Not worth a Continental." Because of this, they knew they must prevent inflation. They wrote the answer into the Constitution under Article I, Section 10, which clearly states "all money must be silver or gold." Precious metals were chosen because they cannot be created at will like paper currency. Using only gold and silver as specified by the Constitution would put a natural restraint on government spending. This would protect your hard-earned wages and savings and give you real wealth with which to protect your future and the futures of your children and your children's children. Remember, evil flourishes when good people do nothing. Take action by supporting independent candidates who are pro-Liberty!

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Tom Hurst - Defender of liberty, free markets, private property rights, and the Constitution