6 Comments
User's avatar
Charles's avatar

Can you expand a bit more on how austerity benefits capitalist interests?

Expand full comment
Steven D Grumbine's avatar

Keeps workers desperate and willing to help control labor

Expand full comment
Charles's avatar

gotcha. The example of the gig economy you gave in the article.

Expand full comment
Michael Kowalik's avatar

Inflation is literally (logically a priori) the effect of money and money substitutes creation on prices, nothing else. Policies and monopolise affect only the balance of prices, not the overall level of inflation.

Inflation is a private tax (for the benefit of the banks) on the entire money supply. It is equivalent to income taxation, but it was just given away to private banks, which means we are taxed twice. The inflation tax is in fact bigger than the nominal prince inflation, because it first absorbs the deflationary effect of economic growth. Marx was not a fool, therefore most likely an agent of the banking cartel considering his evasive treatment of credit, which is pure expropriation of wealth from everyone’s wallet.

If the state took over credit creation from private banks (which is a state prerogative), it could simply tax wealth and leave all income to the workers, no income taxation (which does not even touch the rich). But as long as income tax is a thing, inflation is theft.

Expand full comment
Steven D Grumbine's avatar

Quantity of money is a LOLbertarian fairytale in a free floating fiat regime.

Expand full comment
Michael Kowalik's avatar

We are in a fiat regime. There are no other regimes.

Credit is pure fiat, irrespective of the species.

Counterfeiting money is illegal, because it is theft; credit if legal, but it is also theft.

Expand full comment