As discussed in our previous article, society improves as the backward notions clouding the thinking of ordinary people, gradually make way for the progressive ideas that liberal professors say they believe once they’re safely tenured.
Money is an excellent example of this; until quite recently, people used rock for money. To a modern person, this seems like an obvious idea, as rock is plentiful and thus money would never be in short supply. But no; the capitalist class stopped the poor having all the money they could dig, by insisting the money rock be of a certain type†. Needless to say, this “moneyrock” was rare and only the rich could afford much of it. This rock had to be painstakingly mined, almost always by minorities in dangerous conditions. Also needless to say, only the rich could afford to own these “gold” or “silver” mines.
Throughout history, progressive leaders have tried to alleviate the poverty of their citizens by demonstrating that paper made better currency than shiny rock, but their efforts were thwarted – again and again – by capitalists. Making prices rise (a process called “inflation”) these selfish profiteers forced governments to print more currency so their citizens could still afford to purchase the basic goods they needed to survive. But capitalist greed is infinite, and – inevitably – they made prices rise faster than the government’s printing presses could keep up, and the currency underwent “hyperinflation” and collapsed once the presses either ran out of paper or exploded.
Even the printing presses in relatively modern times were unable to keep pace with the profiteers’ greed; the famous Weimar hyperinflation in the early 1920s bears witness to this, as do various other currency collapses throughout the 20th century, as greedy capitalists subverted progressive, socialist governments’ attempts to make money more affordable.
One of the iron laws of supply and demand – one that is so basic that even conservative “economists” almost understand it – is that when there is an artificial shortage of something, it becomes artificially costly. Because money was needlessly expensive, the rich expected to be paid for lending it to people who – by definition! – needed it more than they did. This hindered commerce and wealth redistribution enormously, and has been shown by accredited economists like Paul Krugman to have been THE cause of the Great Depression.
Progressive thinkers at the time – persons like John Maynard Keynes (taking time out from his relentless campaigning for children in North Africa) – realised that interest rates were destroying capital formation, and started advocating doing away with them altogether, by the obvious means of making money more plentiful. This seemed absurd to the backward “economists” at the time (people in the “Australian School” like Mises, Rothbard & Hitler) but now, it has become such a mainstream idea that all accredited economists accept that zero (or even negative) interest rates are required to save the world’s economies from the problems that inevitably trail in the wake of unbridled capitalism; the very unbridled capitalism that dogs our attempts to create wealth even today.
Yes, it took decades, but thanks to the tireless advocacy of academics unencumbered with real-world experience, economists were – at last – able to see the future, and the future wasn’t shiny rock: the future was paper, and plastic rectangles, and bits and bytes stored on central bank hard drives. Finally: a currency for everyone, issued not in dribs and drabs by privileged, moustachio-twirling capitalist misers, but by the citizen’s own, democratically elected representatives, in virtually unlimited quantities. Finally: unlimited money for everyone. Finally: A people’s currency!
Yes, because we’re no longer obliged to carry rocks around in our pockets, money is now so cheap it’s essentially free; during the last financial crisis, the wise experts at The Federal Reserve (so-called because it is both a Federal Agency and has Reserves) were able to lend some 27 trillion dollars to privately-owned foreign banks, saving the world economy, and rescuing capitalism from itself… again. And because of ongoing developments in printing technology, and expansion of the world’s forests, we are assured by monetary authorities that they are easily capable of creating the asymptotic quantities of paper currency that will eventually become necessary to keep pace with prices, once the capitalists inevitably start making them rise.
† This is how the term “fiat currency” came into being; “fiat” means “let it be so” in Latin, as the governing classes insisted only certain rocks could be money; i.e, “I say this rock (gold and/or silver) is money”. The fact the term dates back to the Roman era just reminds us how long the ruling classes have prevented the poor acquiring their fair share of money.