Like every other task, inflation acts to determine the individual and business policies we are all force to follow. It discourages all prudence and thrift. It encourages squandering, gambling, reckless waste of all kinds. It often makes it more profitable to speculate than to produce. It tears apart the whole fabric of stable economic relationships. Its inexcusable injustices drive men toward desperate remedies. It plants the seeds of fascism and communism. It leads men to demand totalitarian controls. It ends invariably in bitter disillusion and collapse.
Friday, March 13, 2009
Disillusion and collapse
What's wrong with a little inflation? Hazlitt points to a number of consequences: