The entire “right” spectrum of economic ideas, from the center-right of the Republican party, to the “far-right” of Austrianism, has been proven wrong – comically, completely, utterly wrong – yet again.
If you had listened to conservative and right-wing economic ideas for the last five, ten – hell, even 50 or 100 – years, you would be convinced that the massive, unprecedented “money printing” of the last couple of years would have triggered a massive hyperinflationary collapse by now.
But, of course, the opposite is true. Inflation, by virtually any empirical measure, can’t even match the Fed’s target of 2%.
Since inflation has been running below that target, the Fed is attempting to raise inflation above 2 percent. … The Department of Labor noted that prices of used cars accounted for most of the monthly price gains, indicating that prices in other categories had fallen or remained unchanged. Food prices were unchanged, with an increase in food away from home offsetting a decline in the prices of food at home.
Inflationary pressures have remained weak throughout the year, upending the expectations of many that a return to zero-interest-rate policy from the Fed and huge emergency spending programs would combine with production disruptions to raise prices.
https://www.breitbart.com/economy/2020/10/13/inflationary-pressures-remain-very-weaken/
If one had listened to conservative, right-leaning Republicans like, say, Z-Man or RamZPaul, one would expect that these days “a piece of bread could buy a bag of gold” due to the massive money-printing.
But the inflation is no where to be found, at least not on the shelves of the grocery stores – nor at the gas pump. Despite the right-wing predicting “hyperinflation” since the 1970’s, the exact opposite is occurring.
Well – sort of. There is, in fact, inflation – a huge amount of inflation. And yes, it is caused by the money printing.
But this inflation has been greeted with applause by the conservative right-wingers – like Z-Man and RamZPaul – because the inflation is going into the stock market, luxury goods, and various Veblen goods.
These ideologues – often without even realizing it, parroting the Jewish pseudo-science of “Austrian economics” – have been praising Trump for the record high stock market, despite this being the inflation that they have been warning about.
If one pays closer attention to the actual arguments these right-wingers make, you’ll realize that they typically don’t actually involved “economics” itself – the study of scarcity.
Instead, these right-wing conservatives make moral arguments in which they themselves are morally superior to others.
So, a defense contractor – which is essentially a socialist business – is ret-conned by right-wingers into being an actor in the “free market.”
A Wall Street hedge fund trader – completely and 100% reliant on government subsidy – and extra government subsidies every decade, like clockwork, in the form of “bailouts” – are transformed magically into “risk-taking entrepreneurs” operating in the “free market.”
What is the psychological motivation of these conservative right-wingers, to spin these Sunday School moral tales, making themselves “individuals” – even heroes – constantly beset by “socialists” who just don’t know how to “work hard?”
Well, obviously, it’s class anxiety. Both examples eventually let slip their precarious economic situations, but still can’t quite acknowledge their actual class position as what they call ‘welfare queens’ and that their entire economic position is just as reliant on “big government” as the lowliest ghetto denizen of Black America.
The only actual “rugged individualists” in America are living the Ted Kaczynski life. They aren’t conservatives nor Republicans.
And to be blunt, all the country boys who like to talk about how they live off the land – well, they sure as hell love their Ford F-150 trucks – also not made by rugged individualists.

Lurking here.
Larry Norman was a friend.
Only visiting.
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@Neal
Seriously?
My parents didn’t want me to listen to the devil’s music, so a guy from church gave me his old 8 track collection of Christian rock (my parents had an old 8 track player.)
Norman was a genuine talent. Also, Daniel Amos, during their Alarma days, should be counted among the top New Wave acts of that era.
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“Far-right” Austrianism never makes any prediction about where the newly-created money goes, but anyone with eyes can see it’s ended up in financial assets like houses, bonds, stocks, art, collectibles, etc.. “Far-right” Austrianism proposes that money-creation by banks gives rise to the business cycle, a misallocation of resources that can give rise to what appears to be boom, revealed to be hollow only by the inevitable bust.
For generations, every successive bust sees increasingly more government intervention to safeguard the interests of Big Capital and largely insulate it from the consequences of it own speculations. Meanwhile the value of the dollar deceases with every new printing. Wage-earners and fixed-income dependents have borne the brunt of this punishment.
When interest rates start going up, reversing a four-decade trend, financial assets will lose their appeal and all Fed measures will be ineffectual. Hard rain’s gonna fall.
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“Misallocation” is an ideological construct.
“Meanwhile the value of the dollar deceases with every new printing.”
What happens when money is destroyed, causing deflation, as we’ve seen for years now?
“When interest rates start going up, reversing a four-decade trend, financial assets will lose their appeal and all Fed measures will be ineffectual.”
I mean, Austrians have been saying this for longer than I’ve been alive. Their predictions rarely come true – just like stock picking, they are no better at predicting than throwing a dart at a wall.
If you have a model that doesn’t match reality and can’t predict anything, it’s not really a useful model. Anyone can make up a model or an ideology about anything.
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so many who grew up on ‘right wing’ econ never learned that money is not a ‘medium of exchange’ a la gold coins or whatever in the current system but that debt is money. I think I first heard this from Vox Day. I still don’t totally get this but it helps explain the deflation. it doesn’t feel like I’m destroying money when I pay off my credit cards but that’s exactly what it is – paying off debt reduces what the bank counts as an asset. Do I have that right?
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@chezgr@y
I’m not familiar enough with VoxDay’s economic arguments to know if I agree or not, although I do think he has been correct at least since the lockdowns that we are certainly in a deflationary cycle, not an inflationary cycle, and I think too he has pushed back on Austrian ideology. But I kind of suspect that is more a function of his support for Trump – thus, Trump’s budget-busting and massive spending – than any sort of strongly held economic beliefs.
Money is a lot of things. There’s a difference between money and currency. There’s a difference between a semi-liquid financial assets and money itself, too. Yes, debt and credit – same thing obviously – can be and is a form of money. The US Empire’s financial system essentially runs on US Treasuries, which are bonds, thus debt – thus credit – but at the end of the day they are promises to pay someone “dollars” at some point in the future, and “dollars” are mostly just accounting entries in a bank’s spreadsheet.
I keep harping on this stuff because conservatives and right wingers – typically not actual Austrians, but dupes of Austrianism’s even worse cousin, Greenspan’s Monetarianism – are always making bad economic arguments. Not just “bad” in the sense of wrong, or immaterial, but also “bad” in the sense of bad national policy – and bad morality.
“Money” – and currency – is whatever the sovereign says it is. Typically these days the sovereign is the state. Libertarians have an ideological belief that money instead is only a decentralized emergent phenomenon of markets. There is no reason to agree with libertarians on this issue. Certainly, money does sometimes emerge from decentralized markets – and also centralized markets, “cigarettes in prison” being everyone’s favorite example, but also the rather interesting phenomenon the WSJ noticed a few years ago – Tide bottles in poor inner city black communities.
Goldbugs are right that gold is money, or at least can be money. Indeed, I have long suggested that white guys, especially the young, buy some gold coins. If you had bought gold coins when George W. Bush was elected, then sold them the day he left office, you would have beat the stock market handily.
If you had bought gold coins when Obama was elected, and sold them when he left office, you would have broken even, at best, and probably lost a lot of money, at least due to opportunity cost.
Prices are set by supply and demand. The Federal Reserve is an extremely well run system. There is no system that is “fair” and markets are neither moral, nor even practical.
So when conservative right-wingers complain about “government spending” and “the welfare state” I have to counter-signal them, because those are stupid arguments based on not just false economic theories, but are almost always little more than right-wing virtue signaling, just as bad as “Social Justice Warriors” talking about how “not racist” they are.
For the most part I accept mainstream neo-classiscal economic theory now that it has incorporated Modern Monetary Theory. It’s not ME that has a centuries old fringe economic ideology – Austrianism. Nor is it ME that believes in Alan Greenspan’s truly idiotic and failed Monetarianism ideology.
That’s the right-wingers and conservatives. They are fringe, I’m mainstream. No serious economic actor on earth believes in Austrianism – other than huckers like the guys selling junk silver to paranoid suckers.
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The only economics I like is bartering with eggs, maple syrup, chickens, clothes, furniture, etc. in exchange for something I need. Also working for folks who give out food after work.
Yah I know how folks say how money rules the roost and we’re not our names, we are merely numbers AKA our social security numbers. Still despite the financial system which surrounds the modern world I try not to buy too much into it.
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This is the true meaning of trickle-down economics.
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