Writing for AIER, Alex Pollock has a superb review of a recent book by Stephen King: We Need to Talk about Inflation. Since that topic is very much on people’s minds these days and with true believers in omnipotent government like Kamala Harris blaming it on greed and proposing price controls, the book is most welcome.
Pollock writes:
Reflecting on the enduring temptation of governments to inflate and depreciate their currencies, King rightly observes:
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“Inflation is very much a political process.”
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“Left to their own devices, governments cannot help but be tempted by inflation.”
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“Governments can and will resort to inflation.”
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“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” (Here he is quoting J.M. Keynes.)
Absolutely right. Rulers (whether monarchs, elected politicians, military despots, or any other kind) can be counted on to extract wealth from the citizenry to pay for the things they want to do, but prefer to extract it in a hidden fashion by cheapening the currency. And of course, they will try to pin the blame elsewhere.
This new book is must reading.