Tuesday, February 25, 2014

Tim Price: Forty centuries of learning nothing

Tim Price of The Price of Everything blog has apparently written a blog post expressly for my benefit. I commend this piece to you. This is the very topic I have been thinking about a great deal recently. I will expand on why in a later post but Tim so perfectly prepares the way that I will defer to him. The title refers to a book ‘Forty centuries of wage and price controls:
how not to fight inflation’ (The Heritage Foundation, 1979)
Robert L Schuettinger and Eamonn F Butler

This chart is part of the post and should get your attention. If it doesn't you must work at a central bank.

The chart below, courtesy of the St Louis Federal Reserve and Incrementum AG, shows the 
expansion of the US monetary base since 1918; the three separate iterations of QE are marked: 
US monetary base since 1918 

The subject of growing inequality and income inequality is one of the hot political topics of the day and I believe the single biggest cause of the worsening trend is ignored because it challenges the very foundations
of the big government crowd.  Big government imposes costs and failure to account for and pay these costs
cannot be wished away with legislative gimmickry. It has been tried again and again for 40 centures  by every form of government and failed every time. Perhaps we should rethink!

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