What Has Government Done to Our Money?

What Has Government Done to Our Money? Panel Discussion

Mises Institute — Wed, 08 Oct 2014 01:00:00 -0500

This faculty panel was presented at "What Has Government Done to Our Money? A Seminar for High School Students," hosted by the Ludwig von Mises Institute in Auburn, Alabama, on 9 November 2012. Featuring Mark Thornton, GP Manish, Daniel Sanchez and Matthew McCaffrey.

Some of the questions asked of the panel were: What is the connection between the Fed and the current crisis?, What is the business cycle?, Does IP qualify as socialization? and, Is the housing bubble worldwide?

How Money Caused the Housing Bubble and Other Troubles

Mark Thornton — Thu, 09 Oct 2014 01:00:00 -0500

The Federal Reserve manipulates interest rates -bringing rates so artificially low that borrowing money is at greatly reduced cost. Housing developers saw they could build everywhere. That's the bubble. This wealth effect fools people. They live beyond their means. It is not sustainable. The costs rise. The number of competitors rise. Your customers fall. The bust is the market correction to each economic crisis.

Money and Socialism

Matthew McCaffrey — Thu, 09 Oct 2014 01:00:00 -0500

How is socialism related to money? Money should be produced just like other goods through free markets. Central banks should not be controlling money, banking and credit. But, there is currently no competition in money production. This is socialized money production. Because money is part of every exchange, to socialize it puts way too much power in the hands of the Federal Reserve and Central Banks. Central Banks are not concerned with the interests of consumers.

Where Did Money Come From?

G. P. Manish — Thu, 09 Oct 2014 01:00:00 -0500

When all you can do is exchange one good for another, life will be inconvenient when nobody has what you really want. Enter money. You exchange your good for money. That money can now be exchanged for what you desired. These indirect exchanges satisfy everyone. That's the power of money. This lecture by GP Manish was presented at "What Has Government Done to Our Money? A Seminar for High School Students," hosted by the Ludwig von Mises Institute in Auburn, Alabama, on 9 November 2012. Includes an introduction by Mark Thornton.