Ayn Rand in India
Friday, August 18, 2017
  Search 
Home
Opportunities
Ayn Rand - India blog
Quotable quotes
A Chronology
About this Initiative
 
 
Please enter your email here, we would like to keep you informed.
 
 
Connect With Us - Facebook RSS
<August 2017>
SuMoTuWeThFrSa
12345
6789101112
13141516171819
20212223242526
2728293031
Sections
Calender of Events
About Ayn Rand
Writings of Ayn Rand
Objectivism in Perspective
Metaphysics: Objective Reality
Ethics: Self Interest
Politics: Laissez Faire Capitalism
Ayn Rand Institute
Essay Competitions
Resources
Popular References
 Politics: Laissez Faire Capitalism
 
Inflation is man made
Liberty Institute, India Friday, January 01, 2010

Shanu A
Ayn Rand had pointed out decades back in her essay "Egalitarianism And Inflation" that “Inflation, a man made scourge, is made possible by the fact that most people don’t understand it.” If people were sound on monetary matters, government manipulation of money and credit would not have happened, writes Shanu A.

“Food Inflation”, as they have named it, has soured to a decade’s high in India. As usual, speculation and hoarding is being blamed. False remedies are being proposed.  It is time to think in terms of fundamental principles.

Ayn Rand had pointed out decades back in her essay "Egalitarianism And Inflation" that “Inflation, a man made scourge, is made possible by the fact that most people don’t understand it.” If people were sound on monetary matters, government manipulation of money and credit would not have happened.

Ayn Rand asks what would have happened if a person is allowed to trade in paper in a society in which gold has evolved as money. What if such a person claims that he is the best customer and expands the market? The issue, now, must be clearer than crystal to everyone. That person is making a claim on goods for nothing.

That’s precisely what the Government does-Counterfeiting, a crime which is punished severely if done by an ordinary citizen. As Ayn Rand had noted, there is only one institution which has the legal power to trade by means of rubber checks: the Government. Counterfeiting is implicit theft. Of course, it is true that the Government doesn’t simply print paper money and circulate in the market.

The process is more complicated. But, that doesn’t change the intrinsic picture. The fact remains that the Central Bank, a Government institution, creates money out of thin air. Ayn Rand identifies that there will be two concepts a savage thinking on the range of the moment transported into an Industrial society can’t grasp-“Credit” and “Market”. We, however, can’t make such an excuse. We are capable of long range thought. If we are to stop inflation, we should grasp these concepts and step into action.

This article was published in the Liberty Institute on Friday, January 01, 2010.
Author : Shanu is a student based in Calicut, Kerala. His blog is http://memorymaniac.blogspot.com/
Tags- Find more articles on - gold standard | india economy | india inflation | inflation | inflation is theft | price rise

Post your Comments on this Article

Name  
Email    
Comment  
Comments will be moderated

RELATED ARTICLES
The Cure For Inflation
More Related Articles
Politics: Laissez Faire Capitalism
More Articles


Liberty Partners
 
  Atlas Shrugged
 
 
An Initiative of
LIBERTY INSTITUTE, INDIA
All rights reserved.