The Result of Inflationary Economics

January 28th, 2009 | Categories: Economics

Like every other tax, inflation acts to determine the individual and business policies we are all forced to follow. It discourages all prudence and thrift. It encourages squandering, gambling, reckless waste of all kinds. It often makes it more profitable to speculate than to produce. It tears apart the whole fabric of stable economic relationships. Its inexcusable injustices drives men toward desperate remedies. It plants the seeds of fascism and communism. It leads men to demand totalitarian controls. It ends invariably in bitter disillusion and collapse.

(Henry Hazlitt, Economics in One Lesson, 1996 (first published in 1946), Laissez Faire Books, p161)

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