By Lisa Beilfuss April 10, 2020 10:54 am ET
Consumer prices dropped in March at the fastest pace in more than five years, early evidence that the coronavirus is launching the U.S. economy into a period of deflation—a potentially damaging and self-reinforcing cycle of declining prices.
The Labor Department said Friday that the consumer-price index fell 0.4% last month from the previous month, pushed lower by a sharp decline in energy prices. The CPI’s energy basket fell 5.8% from February as gasoline prices slid 10.5%.
The conservatives, libertarians, and Boomers – like Z-Man – all say that we can’t have UBI because it will cause inflation.
These same conservatives, libertarians, and Boomers – like Z-Man – were happy with Trump’s record high stock market – which was, of course, the inflation from the money printing.
Now, due to over-leverage, all that money that was printed, via the financial system, is going “poof” as the rolling defaults begin. The Fed, the Treasury, are all printing money as fast as they can to try to replace the disappearing money.
With ZERO inflation in sight, and the quantity of money decreasing, not increasing, all of a sudden libertarians and conservatives – like Z-Man – are in a panic that giving people a thousand dollars is “printing money” and instead they want to saddle the consumer, the taxpayer, and the government with more debt.
This is an ideological fixation based on the religion of libertarianism and Alan Greenspan’s failed monetarism.
It seems highly doubtful that Z-Man, the libertarians, and most conservatives even know the dogma they spout – other than some slogans, they don’t really have any understanding of the ideologies.
You’ll notice too that they are always engaged in moralizing. They talk a lot about “hard work” – they are the only ones doing “hard work” – and lots of Sunday School lessons about fairness. They typically resort to “racism” to sucker pro-whites by appealing to their vanity. “Don’t have UBI because then Tyrone will get free malt liquor! Instead, keep printing money to give to Schlomo to keep the stock market high!”
Consider: oil, thus gas, is at historically low prices right now. What is the “solution” to the “problem” of cheap gas? All of a sudden the libertarians and conservatives are siding with Al Gore and want to make oil more expensive by cutting production!
Conservatives and libertarians do not make economic arguments, they give moralistic Sunday School lectures they have read from “conservative” pundits who were paid by the financial industry to make those moral arguments, to justify their own bailouts and socialism.
Libertarianism, especially Austrianism, is even worse – it is basically a false opposition based on magical thinking about gold and a basic misunderstanding of psychology.
Forget Mises, if you want to understand economics, read Thorstein Veblen