Cultural Consequences of Fiat Money

Bitcoin and Markets edited this page Jul 8, 2018 · 3 revisions

Fiat money has been disastrous for culture. These are the direct and indirect consequences of fiat money written down, so we can build on these ideas.

"The economic foundation for political rule by the people is that the government is financially dependent on the citizens." - Mises

Direct Consequences

  • Indirect consequences

Political centralization and tyrannical government

  • The government is no longer dependent on the citizens for power
  • The people in control of the money have the power
  • Rule by the elites for the elites
  • Growth of government debt
  • Growth of taxes
  • Growth of government
  • Leads to tyrannical government because power becomes
  • Waging of war

Tendency for the general price level to rise

  • Citizens are incentivized to go into debt
  • Spending promoted
  • Savings discouraged
  • Bloating of the credit market
  • Flow as the cause, push inflation instead of pull inflation

Elongates war because they can hide the expense

  • More government debt
  • Corruption of the media toward propaganda and boogey men
  • Military industrial complex
  • Control of the education system to keep people dumb

Welfare state

  • Few people will vote for higher taxes
  • Dependence on the state

Generalized rush into credit

  • Dependent concern
  • Redirecting leisure time
  • Political correctness
  • Loss of compassion, police others
  • More laws to control
  • Rush rush rush
  • Stress
  • Bad diet
  • Poor health
  • Psychological problems
  • Insatiability
  • Ill-functioning diminishing marginal returns
  • Fragile economy
  • Effeminate men and society
  • Less ability to stand up to government intervention

Degrades ethics of society

  • Time is money
  • Look for short cuts
  • Either you're getting ahead or falling behind
  • Look at others as 'How can you help me?'
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