Monday, December 15, 2008

Thatcher’s Defense of the Free Market

by J. R. NyquistWeekly

Column Published: 12.12.2008

Politicians believe that government spending can save us from catastrophe. Berlinski calls this “the wickedness of profligacy.” Such spending marks a return to inflation. As Margaret Thatcher explained, “For many years we have been told that a little bit of inflation is good for you. Many economists assured us … that inflation is necessary to maintain full employment, to facilitate growth and keep the economy moving. The message was: spend your way to prosperity, and when the economy faltered, spend and spend again.” History shows that the policy doesn’t work. By debasing the currency, the government breaks the trust between government and the governed. According to Thatcher, “Once the people lose their trust in money, the freedom of … society will be diminished or even, eventually, destroyed.”

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