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Source link: http://archive.mises.org/14600/the-north-brothers-building-economic-theory-from-principles-indisputably-true/

The North Brothers: Building Economic Theory “From Principles Indisputably True”

November 11, 2010 by

Weighing in on the side of John Locke, not only on interest rates but also in a general and comprehensive vision of economic laissez-faire that even surpassed Locke, were two brothers, Dudley and Roger North. FULL ARTICLE by Murray Rothbard

{ 1 comment }

Allen Weingarten November 11, 2010 at 11:29 pm

“Wealth and riches, then, are the goods that people are able to produce and accumulate, and not the money, the gold or silver, that enables them to buy those goods.”

The principle that is indisputably true is that people exchange goods because each party views it to his advantage. Therefore money is a medium of exchange, understood in terms of the goods traded by it. This clarifies the discussion that what is at issue is not ‘gold’ but abolishing the legal tender laws whereby the government insists upon fiat money. Fiat money violates the right of people to exchange goods in terms of what each party deems their exchange value. Were there no legal tender laws, people could employ whatever form of money they chose, which would most likely turn out to be gold (although conceivably it could become some other common object, not necessarily metal).

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