Monetary Policy // Current

The Federal Reserve & The Fiat Monetary System

Please Vote On The Live Poll On The Right Hand Side Of The Article. The fiat money system is not backed by anything physical... more

critic
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This will CHANGE your LIFE, and HELP EMPOWER you to MAKE a DIFFERENCE in ~OUR~ WORLD!!!

Zeitgeist: Addendum !!! The video posted is a trailer for what you are about to watch. This is one of the most powerful and... more

TheCocoon
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Ron Paul on Fox Business News

Let the companies liquidate their bad assets through the market and go out of business. Other companies will come in and fill the... more

Psychedelic
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Thousands rally at Ron Paul Convention - CNN.com

The one candidate who offered real change, discussed real issues, and gave real solutions.

Libertas
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US government immorality will lead to bankruptcy

David Walker warns America of its true threat.

Libertas
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Wages, Unemployment, and Inflation

Our economic system — the market economy or capitalism — is a system of consumers' supremacy. The customer is sovereign; he is, says a popular slogan, "always right." Businessmen are under the necessity of turning out what the consumers ask for and they must sell their wares at prices which the consumers can afford and are prepared to pay. A business operation is a manifest failure if the proceeds from the sales do not reimburse the businessman for all he has expended in producing the article. Thus the consumers in buying at a definite price determine also the height of the wages that are paid to all those engaged in the industries.

Capitalism has improved the standard of living of the wage earners to an unprecedented extent. The average American family enjoys today amenities of which, only a hundred years ago, not even the richest nabobs dreamed. All this well-being is conditioned by the increase in savings and capital accumulated; without these funds that enable business to make practical use of scientific and technological progress the American worker would not produce more and better things per hour of work than the Asiatic coolies, would not earn more and would, like them, wretchedly live on the verge of starvation. All measures which — like our income and corporation tax system — aim at preventing further capital accumulation or even at capital decumulation are therefore virtually antilabor and antisocial.

One further observation must still be made about this matter of saving and capital formation. The improvement of well-being brought about by capitalism made it possible for the common man to save and thus to become in a modest way himself a capitalist. A considerable part of the capital working in American business is the counterpart of the savings of the masses. Millions of wage earners own saving deposits, bonds, and insurance policies. All these claims are payable in dollars and their worth depends on the soundness of the nation's money. To preserve the dollar's purchasing power is also from this point of view a vital interest of the masses. In order to attain this end, it is not enough to print upon the bank notes the noble maxim In God We Trust. One must adopt an appropriate policy.

Excerpt from 1958 articleOur economic system — the market economy or capitalism — is a system of consumers' supremacy. The customer is... more