The Forgotten Cause of Sound Money | David Stockman

The Henry Hazlitt Memorial Lecture, presented by David Stockman at the Austrian Scholars Conference. Recorded on 12 March 2011 at the Ludwig von Mises Institute in Auburn, Alabama.

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[Slayer8957]

"two party free lunch competition" -that perfectly describes what we have now. Democrats and Republicans are going to be the end of this country.

[Billpete002]

Don't feed the trolls.

Their brain deteriorates when hearing the truth!

[Truthpolice9698]

I hate it when Ivy Leaguer's brag about their bs education. If their education was worth a fuck Bush and Obama would not be the fucking idiots that they are.

[TomH364]

There's a really good website that explains banking in laymans terms. Makes it easier to understand what guys like Stockman and Ron Paul talk about. Google "hmscoop.com".

[shakaama]

is there a transcript available of this speech?

[synestheticmonotony]

@deficithawker It is obvious that you have not given a thorough study to the science of economics. Whether or not it is intentional is irrelevant, but you are using the same talking points that a Marxist would use. Let's be clear that Marxian ideas are not economics; Marxism is to economics as religion is to science... incompatible. If you want specifics as to what I am talking about, or wish to expand this debate, then this must be done through PM's rather than the limited comments section.

[synestheticmonotony]

@deficithawker Increases in efficiency as a cause of involuntary unemployment is the same fallacious reasoning used by Marxists when discussing machines in the production process. Sure, specific jobs will no longer exist, but in an unhampered market, there are plenty of jobs to go around (there is never enough labor to satisfy the demands of the consumer), thus it is not involuntary unemployment. Real unemployment is caused by distortions in the capital structure, not improvements to it.

[synestheticmonotony]

@deficithawker No economic school of thought has used inflation as a definition of PPM, rather it is a causal factor of changes in PPM (as well as many other things). PPM can and does change without inflation. Though I am not a fan of the Fed, it did release an historically accurate paper on the origins of the word inflation, just google the phrase "origin of inflation" and it should be the first link. The word has always been used to describe changes in the money supply and/or price.

[gergenheimer]

@deficithawker I made the numbers simple to illustrate a point, and you missed the point completely - here it is - in the first example, even though wages are falling, those wages will gain in purchasing power because productivity is still increasing. In the second example, even though nominal wages are increasing the purchasing power of those wages will be flat or decreasing. The point is, nominally higher wages are necessarily better for anyone. Get it?

[Lyceum1979]

This Stockman guy is hard to figure out. He was on Bill Mahe's show and was completely anti-gun. He said he though they were a barbarous relic and made reference to Keynes. He implied they should be completely illegal.

[synestheticmonotony]

@heckler73 Further, the same holds true when money supply is decreased. Just as in a barter economy, when the supply of good A is decreased in relation to good B for trade, it tends to bid down the price good B. If the supply of good A is increased, it will tend to bid up the price of good B. Since money is merely another good, it is subject to the same laws of supply/demand, as well as marginal utility. The primary difference is that money is valued more for exchange value rather than use value

[synestheticmonotony]

@heckler73 Austrians see inflation/deflation as a monetary phenomenon, not a price phenomenon.The change in prices is merely the result of the inflation/deflation of the currency, and is due to the change in demand to hold money in relation to supply dictated by the diminishing marginal utility of money when supply is increased (just like any other good). Price decreases in a theoretical stable money system is a function of efficiency of production, not money supply. Thus, it is not deflation.