1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar
Source link: http://archive.mises.org/12736/inflation-destroys-savings/

Inflation Destroys Savings

May 18, 2010 by

All over Europe today you see unrest, because the European masses are discovering that they have been the losers in their governments’ financial operations. There is no better way to bring about a tremendous revolution than to destroy the savings of the masses. FULL ARTICLE by Ludwig von Mises and Bettina Bien Greaves

{ 6 comments }

The_Orlonater May 18, 2010 at 5:34 pm

This article is really great, too many advocates of unconstrained inflation(usually for financing the government) grossly overlook these powerful insights. If the time preferences of society are distorted, then future progress of civilization cannot continue, and if that can’t continue, the government will have of no means to operate.

billwald May 18, 2010 at 11:22 pm

“But it is different for people with fixed incomes. The man who retired 25 years ago with a yearly pension, let us say of $3,000, was by and large in a good situation or was believed to be in a good situation. But this was at a time when prices were much lower than they are today. I don’t want to say any more about this situation and the consequences and effects of inflation for the people.”

The year von Misis died . . . most of the people who retired 25 years prior to 1973 were either dead or in such poor health they wished someone would pull their plug. Should a nation’s economy be designed for them?

Dagnytg May 19, 2010 at 2:17 pm

Surely you jest. Your comment implies that that if a person works their ass off for 50 years and can no longer work- that the value of their savings (money saved so as not to be a burden to their family and society in their non-working years and perhaps money left over for their children or a worthy cause i.e mises.org ) is to be devalued because they’re… old?

So a “nations economy should be designed for”… speculators and gamblers ? (as it is currently)

Let me also point out that the poor, working poor, and the lower middle class are also on fixed incomes. So you’re suggesting that their efforts to be responsible (like working two or three jobs so as to save for a house or send their kids to a private school) is also to be devalued.

Remember inflation not only devalues money…it devalues human action and all it’s precepts like hard work, intelligence, effort, responsibility, restraint etc.

Last, the mistake in your thinking comes down to this is statement…” Should a nations economy be designed…” There should be no design to the economy…in a state of freedom markets evolve and new markets are created but one variable remains constant- the importance to the value of exchange…sound money.

PS>I’m sure if you reread the article these ideas will become more apparent. I wish you good luck in your intellectual journey:)

Stephen Grossman May 19, 2010 at 9:56 am

>most of the people who retired 25 years prior to 1973 were either dead or in such poor health they wished someone would pull their plug. Should a nation’s economy be designed for them?

A socialist economy has death panels. This is the worker’s paradise with a vengeance.

Expert Savings Advice June 9, 2010 at 12:57 pm

Expert Savings AdviceSaving money is as much mental as fiscal. With an attitude adjustment and perhaps a few tricks, you truly can get ahead — one step at a time.Prevention is always the best medicine, but there are times when a visit to the doctor or clinic is a necessity. For minor problems like a sore throat, flu shot, muscle sprain, or ear infection, try going to the local drug store or grocery store pharmacy. These days, most of these retail stores in–house care facilities are staffed with a nurse practitioner or physician’s assistant. There are several insurance companies that offer coverage for these retail care facilities.These professional care givers are able to treat and diagnose most problems and they can offer treatment for a lot less than going to a doctor’s office. According to the Rand Corporation, a non–profit think tank, a visit to a local retail clinic can cost about a third less than going to an urgent care clinic or the family physician. Compare that with $570 for the average ER visit, according to the Rand study. Check with an the HR department at work, or with an agent or insurance representative for more details on specific insurance coverage.

Savings Accounts June 11, 2010 at 5:19 am

Hi, Your comment implies that that if a person works their ass off for 50 years and can no longer work- that the value of their savings (money saved so as not to be a burden to their family. There is no better way to bring about a tremendous revolution than to destroy the savings of the masses.in a good situation or was believed to be in a good situation. But this was at a time when prices were much lower than they are today.
=====================================================
Daniel North

Comments on this entry are closed.

Previous post:

Next post: