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Re: OT: Economics



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On Tuesday 06 March 2007 15:30, Paul Johnson <baloo@ursine.ca> was 
heard to say:
> Laissez-faire economics is an impossible pipe dream and Germany
> proved it. Taken to it's natural end, you get Germany's pre-WWII
> out-of-control rapid inflation where soon it takes millions of
> dollars just to make a basic grocery run.

Rather than attempt to demonstrate that Germany, by itself, has been 
about as historically Laissez-faire as Stalin, or to point out that 
the Kaiser had already established intrusive government regulation 
and the welfare state long before WW1, I will instead point you to 
the one huge error in your argument that makes arguing the rest of it 
pointless:

Inflation is caused by governments printing money.

The reason for the Great Inflation was the German government's attempt 
to print enough paper money to pay off the crushing reparations that 
were imposed after WW1.

Do you really want to try and assert that a government printing 
worthless paper money is somehow "laissez-faire"? 

If so, you are in dire need of a dictionary. Or better yet, a book on 
the subject:

Economic Freedom and Interventionism, Chapter 18:
Inflation And You
http://www.mises.org/efandi/ch18.asp

"It has been asserted that Nazism is the fruit of the vast German 
inflation of 1923. That is not quite correct. It would be more 
correct to say that the great inflation and the Nazi scourge both 
derived from the mentalities and the doctrines that long dominated 
German public opinion. The State, which the German socialist 
Ferdinand Lassalle had already proclaimed as god, was supposed to be 
able to achieve anything. The omnipotent State was credited with the 
magic power of unlimited spending without any burden on the 
citizenry. Money, said the German "monetary cranks," is a creature of 
the State; there is no harm in issuing infinite quantities of paper 
currency."


If this really is what you think laissez-faire capitalism entails, no 
wonder you argue against it. I would too.

Now, if invoking Godwin's Law means this thread is over, I am very 
happy to be the one to do it. The economic ignorance that has been 
demonstrated over the last week has been a nightmare of governmet run 
public school all over again. And no one is listening to anyone else 
when they are corrected, so why bother?

Curt-

- -- 
September 11th, 2001
The proudest day for gun control and central 
planning advocates in American history

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