What You Should Know About Inflation
No subject is so much discussed today -- or so little understood -- as inflation, writes Henry Hazlitt.The politicians in Washington talk of it as if it were some horrible visitation from without, over which they had no control -- like a flood, a foreign invasion, or a plague. It is something they are always promising to "fight" -- if Congress or the people will only give them the "weapons" or "a strong law" to do the job.
Yet the plain truth is that our political leaders have brought on inflation by their own money and fiscal policies. They are promising to fight with their right hand the conditions brought on with their left. FULL ARTICLE
Comments (13)
Hurrah! Thanks for posting this. I also highly recommend The Inflation Crisis and How to Resolve It by Hazlitt but I think it's out of print.
Published: April 9, 2008 9:36 AM
Ver good! Hazlitt always so clear.
in spanish:
http://hidalgosypiratas.blogspot.com/2008/04/mentiras-de-la-inflacin.html
Published: April 9, 2008 10:26 AM
I just read this in news about the truckers strike
"Diesel this week was at an average just shy of $4 a gallon according to the American Trucking Association. If a trucker is filling up a 300-gallon semi, that bill could top $1,200 .
Riley said steps must be implemented to help all consumers fight the rising costs of gas.
"We are all, as consumers, making changes in our lifestyles and purchasing habits and it all goes back to fuel costs," she said.
"You certainly don't buy frivolous items like stereos, computers and jewelry," she said.."
Published: April 9, 2008 10:29 AM
Milton Friedman's famous quote about inflation (Inflation is everywhere and always a monetary phenomenon.) resembles the third paragraph of this piece strikingly.
Did he give credit to Hazlitt, or was this plariarism?
Published: April 9, 2008 10:50 AM
This little book by Henry Hazlitt was my first introduction to Austrian Economics. This books should be one of the most highly promoted books by the LVM !!!!
It's written in laymen's terms and easy to understand. I was numbed after reading it. Up until then, I also thought prices just rised because that's the way it's supposed to be.
And Yumi...The book is in print:
http://www.mises.org/store/Product1.aspx?Product_Id=333
Published: April 9, 2008 12:05 PM
Yumi..ignore my comment...it seems my brain is still numb :-)
Published: April 9, 2008 12:35 PM
The book Yumi cites is a later edition of the one we have in print. It has some new material but it is out of print, and there is no magic trick I know of that would permit us to bring the later version back.
Published: April 9, 2008 1:01 PM
What prevents the later version from getting into print? Are you blocked by copyright regulation, or is it merely that the Institute doesn't have the money necessary to put it into print? Or is it something else? Just curious.
http://www.mises.org/books/inflation.pdf
Published: April 9, 2008 7:39 PM
Just like to say that doing audio versions of the Daily Article is a great idea, and I hope there are many more to come.
Published: April 10, 2008 9:06 AM
If the goal is to undermine "confidence in the justice of a free enterprise system," (next to last paragraph) and replace it with an "advanced" (socialist or fascist state), then what a marvelous tool inflation is.
Published: April 10, 2008 11:14 AM
I'm reading this right now. Great book so far. It is the perfect book for those who want a primer on what inflation really is and not what the media and government economists say it is.
Published: April 10, 2008 7:21 PM
This is an excellent article and should be a must reading in every class that touches on economics.
However it will not be since the public education system is geared for this information to be unknown.
Henry Hazlitt is being kind when identifying these counterfeiters by not calling them thieves which is what they are. How long can a society prosper and be morally upright when this kind of thievery is being perpetrated day in and day out?.
I am sure the Treasury, most of Congress and Federal Reserve know what they are perpetrating is corrupt, unfortunately most business people are too immersed in trying to make an honest profit to notice they are being fleeced, and then are stymied when their best laid plans go awry because of the counterfeiting going on, on top of that they are forced to pay taxes on fictitious gains they thought were real. The injustices are just too numerous to be contemplated without tears in ones eyes.
Published: April 10, 2008 10:25 PM
Those last 3 sentences are wonderful.
Just curious, Hazlitt seems to be proposing changing Fed policy as the solution, as opposed to simply not having a central bank in the first place. Did Hazlitt believe there are legitimate functions of a central bank? Or does his call for the gold standard imply that the central bank isn't needed ?
Published: April 11, 2008 3:12 PM