>> February 28, 2020
>> Blog Post #32
Once again it is important to base all of Rothbard’s writings in the context of a free market.
In a Free Market:
- Money originates from the choice of a commodity, by the free market, as a medium of exchange.
- The unit of money is a unit of weight of the commodity.
- Usually a metal such as gold or silver is used.
- The shape and form of the money are chosen by the market participants.
- Private coinage is a legitimate business endeavor.
- The price of money is its purchasing power. It is a function of supply and demand on the market.
- Government’s wish to fix the price of money is an interference with the free market and the public’s demand for money.
- Multiple monies can co-exist on the market. Their relative prices are a function of the ratios of their respective purchasing powers.
- Increases in the money supply dilute the purchasing power of each ounce of money.
- Inflation is the increase in money substitutes, not covered by the same increase in the real stock level of money. It is never socially useful and only benefits certain people to the detriment of others.
- Inflation is a fraudulent invasion of property.
- Inflation could not exist on the free market.
- Freedom can run a monetary system superbly, without any need for government interaction.
- Liberty is the mother, not the daughter of order.
Freedom, Liberty & Absence of Government Intervention