So now, what will the government do at the first sign of trouble? … It will take complete control of the economy—just like the New Deal tried to do. What the New Deal tried was strange and sudden. What the government will do in the next crisis is pre-determined…
There is a delusion that this can not happen because of what America used to be. But, “by a long lure of planned grass a society of bison may be decoyed to captivity in the Valley of Security.” The question is, will the herders be good to us? The answer: “Nature was sometimes cruel.”
A Condensed Version of: Ex America by Garet Garrett.
Compiled and Edited by Dr. Jimmy T. (Gunny) LaBaume
Ex America, Part VII. 1951
New Deal inflation was certain to be popular because it enriched many while impoverishing only a few. Furthermore, if it could be arranged so that the enriched could assist the few, then it could possibly go on forever. This was the logic of inflation. But it is seriously flawed.
The theory of perpetual inflation and perpetual boom goes something like this. If creditors are hurt by rising prices, it would be better to aid them from the public treasury than to deflate wages and prices because that would hurt too many others. Thus, immunity from the ill effects of inflation could be provided for everybody by more inflation.
But the logic of this leads to an economy that is like a rocket. It must go ever higher…
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