Law of liberty - similar situationIt could happen that a government feels very comfortable collecting a certain amount of money in traffic fines for crossing a red light. With a minimum expenditure of resources, this particular government would achieve a substantial fundraising, since also the number of transgressors and fines in absolute terms would be much higher than under the circumstance of a greater application of the norm. However, the social purpose of the repressive system is not fulfilled: fines applied in this way do not have a dissuasive effect that contributes to ordering traffic and guarantees the safety and physical integrity of passers-by and drivers. In our example, it is common for cars to not respect the red traffic light and consequently accidents occur, resulting in the crossing of streets, both for pedestrians and drivers, dangerous and a source of large losses for individuals. But, at the same time, such an ineffective system to control traffic not only finances itself with fines, but also generates a surplus that represents a source of income for the government to cover other types of expenses. Of course, accidents and danger on the public highway are costs to be assumed by the government and society, with which such a de facto collection system is very likely to be highly inefficient, since it ultimately generates net losses or losses for the government or for society or for both. However, if a ruler decided to invest resources to increase the degree of application of fines for violations of traffic regulations, it would be found that, in the short term, such a decision would lead to financial loss. Such would be the costs and consequences of increasing the level of application of the rules: if technological devices such as cameras were installed, with expert computer systems that processed the information properly, not only in terms of speed but also in terms of precision on the identity of the offending car, the fines would reach the owners of the vehicles a few days after the occurrence of the offense and the process of discharge and execution of the fine was relatively agile, the drivers, in a short time, would become much more scrupulous in the face of to a traffic light. With all security it could be said that accident rates would drop drastically, resulting in a direct benefit for society and direct and indirect benefits for the government. law of liberty
Law of liberty VideoThe TRUTH Shall Make You FREE (from religion) John 8
Richard Reinsch :.
David, glad to have you on the program law of liberty. David Goldman :. The smart people tell us that inflation fears have subsided. There are a group of economists who strangely call themselves modern monetary theorists, who argue that we can take on an unceasing amount of debt and spend it however we want on various social programs, environmental starbucks customer segmentation, and none of this will have untoward results or result in things like inflation. What do you make of all of this? And what would it mean for the value of the dollar, this incredible spending? The numbers you cited are truly astonishing, by historical standards. Just to give an example, after the crisis, we ran a big deficit, not nearly this big, foreigners financed about half of the Obama debts. Foreigners so far have financed zero of the net treasury issuance over the past year, which is ominous.
Now, does this turn into realized inflation? A great part of the problem we have is the measurement of inflation. Every American family has two really big ticket items on their budget. One is the house and the other is the car. So when you say we can tame inflation, how do you do that? I law of liberty the Federal Reserve has a tiger by the tail. They look at the cost of rent.
So, I submit that here 1. That the explosion of housing prices, and explosion of used car prices is a much better indication. One is prices go law of liberty. So the amount of money spread over a smaller amount of goods becomes less valuable, the value of money goes down. The second thing is that people stop buying things because prices are going up, so the economy either slows or goes into recession. And the third thing is we import a lot more from China.
Subscribe to Blog via Email
And all those are happening, at the same time. There are very few families in the United States that can do without a house and a car. So inflation is here. But what we do seem to libety a lot about is this notion that we have very low inflation and to the extent, as Chairman Powell has said, Secretary Janet Yellen, that law of liberty we see inflation start to creep up they can tame it relatively quickly with conventional tools. Well, inflation could be a demand side or a supply fund phenomenon. In real terms, orders for capital equipment are back where they were in the s.
So US manufacturers have done very little investment in the past 10 to 15 years. Our production capacity, our supply chains are now constrained. How do you see that? I think the excess reserves issue is relatively minor.
Spontaneous thoughts on a humble creed
The management of excess reserves affects the extent to which commercial banks are able to law of liberty treasury securities and make loans. I think the critical issue is interest rates, the deficit, and the fact that the giant sucking sound here is all the capital in the United States going into financing the deficit.
I guess the reason why I asked that liherty is some say that the policy of interest on excess reserves allows the fed to both monetize the debt and curtail inflation because the money is then parked. And these banks fed reserve accounts does not immediately go out into the economy or competes with other rates.]