The Fiat Money-Socialism Connection

Written by Staff Writer

FreeMarketThe Hidden Link Between Fiat Money And The Increasing Appeal Of Socialism -Zero Hedge
"What causes the seemingly unfounded confidence in socialism we encounter more and more in the news media and among political activists? It is likely not a coincidence that most people living today have lived most of their lives in a world dominated by fiat money.

It has now been nearly fifty years since the United States broke all ties between the dollar and gold. It's been even longer since other major currencies were tied to gold at all. Consequently we now live in a world where the creation of wealth is seen by many as requiring little more than the creation of more money. In this kind of world, why not have socialism? If we run out of money, we can always print more....Gold backing of a currency provided a solid intellectual foundation of reality that few even recognized existed within themselves; (i.e., that we live in a world of scarcity and uncertainty). This reinforced the idea that wealth has to be built. It cannot be conjured out of thin air, just as gold cannot be conjured out of thin air. But fiat currency can be conjured out of thin air and in enormous amounts. The longer a fiat currency is the coin of the land, the more one is led to believe that nothing should be in short supply, since everything is bought with money and money need not be in short supply....The psychological impact of a lifetime within a fiat money economy cannot be underestimated. One's world is turned upside down....If wealth is so easy to create, many conclude only greed and cruelty are what stand between us and far greater prosperity for all. But that is the very reason that fiat money is so subversive to the social order. In a sound money economy any new spending program can be funded only by an increase in taxes, an increase in debt, or by cutting existing funding....It would be hard to invent a more effective method for the destruction of modern society."