Well I do not know how many of you can associate Ludwig Erhardt with something. However a books published in 1957 and now in it’s eights or so edition. Still is
as actual and valid as before. The most prominent example:
“Price stability should be considered a base human right”
Why is that simple but legendary. Well money is the mean to freeze demands. If anyone just spends all he/she has, nothing is left for investing. So someone must
have act economical sound, such that he/she can afford not to spend all one’s money. Now this money is earned at a certain point in time. And in that certain point in time the money has it’s “original” value. Now what happens while prices are not stable? It’s simple work in the past is devalued. How? Well simple the if money looses half it’s value in let’s say 10 years. The original save has been betrayed. And look into the big inflations. You always will see the honest man living withing it’s bounds was betrayed. And especially in Germany who was responsible for this. Well in every war people should buy bonds, but this is just to make those keen on having war more or less happy. And well because they have the guns they do not argue about it they just make a law which demands that all the money has to be put into “war bonds”. Well they will be named differently probably. But it’s for stealing money of worth and living the creditors with the vague hope of economic recovery.
Well after war there is alway economic recovery but it’s not that the governements will ever pay back their debts. They will do currency cuts, deevaluate the old debts and isssue new worthless money. As long as they have the power to play with our values that way, any hope of improvements are vain. So how does your country handle price stability?
See what happens in hyperinflations. See how poor one can get if money is no longer worth anything. There is not better way to ruin any country but through ruining their money.
Now 60 years later this is still a simple truth. But it’s also legend.