The war on cash is a sign that central banks may see a dangerously deteriorating situation, one that has led to a feeling of desperation by governments and a wish to control the wealth of citizens.
In The Wealth of Nations, Adam Smith applied Francis Hutcheson’s idea of “natural liberty” in formulating a conception of the meaning of individual freedom and the role and functions of limited government in a free society.
Hume presented a devastating criticism of Mercantilist thinking on trade and commerce, while at the same time, demonstrating the self-regulating and “balancing” forces of the market process.
One of the most cherished misunderstandings, if not delusions, of the social engineer – the individual who would presume to attempt to remake society through conscious and planned design – is the confident belief that he (and those like him) can ever know enough to successfully remold mankind and human institutions.
This talk examines the development, operation and performance of monetary systems in the absence of government intervention.
How currency monopolies promote booms and busts, and having a lender of last resort leads to moral hazard and financial instability.
Society was not created by design to provide safety and security, but, instead, freedom and rights emerged and evolved out of more primitive forms of tribal and collective association as responses to considered injustices and abusive power.
Clear moral principles, such as honesty, make the right—the self-interested, win-win—course of action so much easier.
Adam Smith was one of Hutcheson’s students in Glasgow, and his influence on Adam Smith was singularly significant, from everything from the importance of division of labor and the role of private property, to the normative notion of a free society based on a “system of natural liberty.”
The “moral” that Mandeville drew from his tale was that prosperous, wealthy and great societies only arise from men’s self-interested desires, and that is what made for successful civilizations:
CSR also sneaks in the ideal of altruism, the duty to serve others “to further some social good, beyond the interests of the firm.”
“Monetary control” refers to the various procedures and devices the Fed and other central banks employ in their attempts to regulate the overall availability of liquid assets, and through it the general course of spending, prices, and employment, in the economies they oversee.
I regard any need for last-resort lending as reflecting, not the inherent shortcomings of private financial markets, but the debilitating effects of misguided regulatory interference with the free development of those markets.
By clearly and publicly withdrawing their moral sanction of government’s freedom-curtailing and welfare-destroying actions, business leaders can have a big impact on all of our future.
When governments find it impossible to continue raising taxes or borrowing funds, they have invariably turned to printing paper money to finance their growing expenditures. The political economy of the French Revolution is a tragic example of this.