What is inflation? - Ludwig von Mises
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- Опубликовано: 11 сен 2024
- We often conflate the cause with the consequence. In this video animation, Ludwig von Mises explains what inflation truly is, historically, and how the semantic revolution altered the meaning of the word inflation and how it prevents us from tackling the problem.
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#inflation #inflationexplained #mises #libertarian
It was an honor for me to have adapted the ideas of the great Mises in the script of this video. Participating in this animation was an honor to me. Libertarian Europe does an excellent job.
Great job!!
Ludwig von Mises is a hero of mine. It was an honour for me to be his voice in this video. Great job!
Thanks again! Your voiceover was amazing.
The fact this has 3k views is criminal. I’m only 2 mins in and this video is pure gold. Keep spreading the awareness!
But seriously, it's rare that every minute of the 14 is succinct but also simply explained and profound at the same time. Very hard to pull off all those things at once, usually most teachers have to sacrifice one or two of those.
Perfectly explained
Love this. Subscribed. You had me at, "blame government."
Anyone here after the money Moicano shout?
Yes that was epic
It's a fascinating sign of the times how the political class blames the private, wealth producing, economical class for its own vices. Sometimes I almost wonder whether the average democratically elected politician is competent in any other regard than shifting blame
Required video for all upper class high school students. 👍🏻
This needs 100m more views or so! 💛
Great video! Just finished The Theory of Money and Credit, doing a little RUclips to wrap my head around all of it.
That's quite a read. I read that one after I became familiar with the teachings of the Austrian school. I'm glad I did or I would have been lost. Cheers.
Glad you liked it!
@@libertarian.europe more vids soon ?
In talking about the source of inflation, 5:52 says "since there are no more goods than before", but is that always true?. I totally track with the idea that in the case of stimulus cheques, UBI, or govt welfare for example, there will be 'more $$ chasing the same amount of goods', or that 'some people will start to have more money while everyone else still has as much as before'. I'd like help understanding the Austrian response to the following:
I just finished Kelton's MMT book, and in it the argument seems to be that "we should give under/unemployed people jobs with printed money, and it's ok because they will produce goods [that society needs or at least 'are useful']". I don't know why this is called a new theory since it sounds like a retread of Keynes' boosting aggregate demand on 'useful projects that more than pay for themselves' like dams, roads, education, hospitals etc. This does seem to partially refute the claim at 5:52 though? -->
Let's say $ is printed to give a job to someone to make more bananas. Doesn't the Keynesian claim that [in theory] this balances out more $$ with more goods? Is there a direct Austrian response to why this would still be inflationary even if proportionately more goods are produced? Or in that case is the response more like 4:20:
It may not be obviously inflationary [hard to measure if the amount of goods produced is worth the person's income], but the problem is precisely that 'govt doesn't buy what citizens would buy'. How can a central planner know if the previously unemployed worker should be making more bananas, or bigger roads, or electric vehicles or more healthcare?
I'd really appreciate if anyone can point out things I've missed! Or if anyone has nuance/further thoughts to add 🙂
What would be your question?
@@libertarian.europe Sorry, I edited my comment to just *be* the question! :P I was watching on mobile the first time and it's way too painful to write that on mobile!
Great job, I love it.
You've all my support from Algeria.
Excellent! Happy that I could possibly help! Keep up the great job!
Thank you, Stéphane!
Show de bola!
HAIL MISES!
new money is also created with the loans, the banks don't lend depositors money, they create new electronic money when they lend
That is one od the reasons why quantity theory od money is not correct and has been proven wrong
Ive got to read a book about this guy any recommendations?
I agree it's important to think of inflation JUST as the rise in money supply, not as a rise in prices more broadly. But are taxes better than inflation? Not sure I follow that argument around 6 minutes into the video. Sure - prices rise when inflation occurs and buying power goes down for holders of the currency. But why is that worse than the government taking money through taxes and then prices not rising? You have more money in the first case, but your money has less buying power. In the second case, you have less money, but the same buying power. I don't see why inflation is worse than taxes. Especially in cases like for the USA, where the currency is held around the world. Wouldn't it be better for the government to impose the cost of building some new road on people around the world instead of just on citizens?
What he is saying is that raising taxes will not cause a revolution in prices. He's not saying raising taxes is good. Mises is not talking here about the problems that can be caused by raising taxes, because the point is explaining inflation. In both cases (tax and inflation), the people pays. But in the case of taxes this is more noticeable than in the case of inflation.
Is important remember: The rise in prices is just one of the consequences of inflation.
The debate if the taxes is worst than inflation is a good debate, but is not the point of the video.
You know, taxes delete money which was previously created via government spending
@Libertarian Europe, how can one help with subtitles in different languages? I'm interested in helping.
You can contact us on Instagram or Facebook.
Thank you for sharing these brieves but intense educational lessons from brillant intellectuals.
I'm kind of new in this philosophical field. Where this says does it come from ? Theory of Money and credit like quoted in the video ?
I adapt the script from: Human Action and ECONOMIC POLICY THOUGHTS FOR TODAY AND TOMORROW.
Economic Policy: Thoughts For Today And Tomorrow.
There will be a French version of this book very soon. We participated in the translation of this book and it will be soon available.
It'll come under a different name though. Keep an eye on Éditions John Galt.
editions-johngalt.com/
Amazing video Lucas first! 🔥🔥🔥
Danke
Why so little views. Needs way way more.
Great stuff 👍
Thank you! Cheers!
5:52 this is a fallacy. If you distribute the newly printed money to people who can produce more with it than what would have occurred it would cause an increase in the amount of goods which if large enough can cause deflation
Let me chell you someching....I can't afford choo lose Brada!
👏👏👏
Which writing from mises this comes from?
Phenomenal video.
Да/нет/неоднозначно
Countries like Japan have increased the money supply with next to know devaluing of the currency for over a decade. So, no. Inflation is not simply adding money.
The original concept of inflation is to increase the money supply. Do not conflate the cause with one of its very possible consequences (the general increase in prices), if you do that, we can never talk about inflation (the increase in the money supply). You are going for the semantic revolution here by saying that inflation is the general increase in prices.
Inflation is a very old term and it was never supposed to mean the general increase in prices. It was the name used by economists for over than a century to talk about the increase in the money supply. Mises observed how it changed, as he was born in 1881 and as he died in 1973. A concept that he learned in the past was simply altered in the future to serve the inflationists and the politicians in a way that people do not understand what is causing the general increase in prices.
In this way, destroying the concept of inflation and confusing it with the general increase in prices, inflationists get away with the issues that are caused by them.
Inflation is a policy adopted by the central banks that are controlled by bureaucrats and politicians. It is a powerful tool for them to gain popularity, crash the economy in a few years when the power no longer lies with them.
Back to economics, as soon as the new money enters in circulation for the overall population, the general increase in prices happens. Often it happens through cheap credit, generally for homes, but it may also happen through giveaways from the government.
There is the possibility where they practice inflation, but this money does not reach the general population, only assets, but the assets will face a general increase in prices, when Central Banks buy the debts from the banks and this money does not reach the overall population as this money may not reach the overall population.
To better investigate inflation and the general increase in prices, observe the M2 charts that measures the quantity of money circulating in a specific economy, the deposits, savings deposits etc.
How’s that working out now? (Hint, they have inflation)
Keep in mind all the other factors that kept depressing prices.
This video has too few views! 8(
Help sharing it around!
Money printing is not inflation, but one part of the manifold process of inflation.
Inflation is also caused at least by:
1) Decreasing energy ROI (see nate hagens)
2) Resources becoming harder to extract (see nate hagens)
3) Increasing administration costs of increasingly complex societies (see joseph tainter)
4) Decreasing soil health lowering crop yields / nutrient yields
5) Increasing regulatory red tape
6) And yes, monetary debasement
All of which lead to an increase in prices.
But monetary debasement is not the cause of the problem, it's just a mechanism to let us paper over our unsustainable practice of exponential growth and extraction on a finite substrate.
Reality is pushing back against us. Changing the monetary standard will not solve inflation, it will force us to change the very system with which we interact with the planet to one that is flow-based, not stock-based.
Historically, the definition of inflation is monetary expansion.
We have just published today an article talking exactly about that:
libertarianeurope.com/economics/the-real-meaning-of-inflation/
how do u know all that? im still a child in economics so idk how true all that is but i would like to soon. whats your favourite recent book?
@indethbed2546 The best book i've ever read was "The matter with things" - not relevant to this topic, but changed how I see everything.
For your financial education, I highly recommend listening to every podcast michael saylor has ever done, particularly the ones 1-2 years ago, and especially the series with breedlove.
@@JoshFlorii What you're doing is a kind of nonsense, sorry. While there can be manifold causes of inflation, such as price shocks, these tend to transient or not impactful at all over time. For example "increasing admin costs of increasingly complex societies" is just plain silly as admin costs can also be automated.
If I had to use a metaphor, it's like focusing on the mice running around the room while ignoring the elephant standing there. The elephant is government money printing.