A stable economy doesn’t come from central planning.  It comes from the market.  Production creates goods, exchange reveals prices, and competition drives them down.  That’s how wealth grows.  When producers strive to lower costs and improve efficiency, consumers benefit through falling prices.  That’s the natural state of a free market.  Yet the system today isn’t built to let prices fall.  It’s built to force them upward.  The promise of “stability” is just the bait.  The trap is perpetual inflation.

The planners say inflation should run at some “healthy” percentage.  Who defines healthy?  The same people who create money out of nothing.  The first hands to touch the new money always win.  Their demand rises before prices catch up.  By the time it circulates to you, goods already cost more.  Your paycheck buys less, your savings shrink, and your time is stolen in the process.  Inflation is nothing but a hidden tax, draining wealth from those who earn it to those who print it.

Deflation, they warn, is a “nightmare.” That’s propaganda.  Falling prices don’t crush the economy, they strengthen it.  The computer you buy today is cheaper than it was yesterday, yet the industry thrives.  Efficiency rewards both producers and consumers.  Your money gains value, your savings stretch further, and capital must be invested wisely instead of squandered on cheap credit.  The only loser is the state.  It can’t quietly drain your wealth through money printing if prices keep falling.

The myth of even distribution—some helicopter drop of free cash—doesn’t exist.  Early receivers eat first, late receivers starve.  That’s the Cantillon Effect in action.  Inflation isn’t neutral, it’s a weapon.  It distorts prices, causes the business cycle, fuels speculative bubbles, and shifts wealth from workers and savers to politicians, bankers, and corporations closest to the source.  It’s legalized counterfeiting, dressed up in economic jargon, with the appearance of legitimacy.

Ask yourself: how would lower prices harm you?  They wouldn’t.  They’d help you.  The harm comes only from the state and its central bank, robbing society under the cover of “monetary policy.” Inflation isn’t prosperity—it’s expropriation.  The sooner people see through the illusion, the sooner the counterfeiters lose their power.  The fight for sound money is the fight for freedom itself.

Reference

Murray Rothbard; The Case Against The Fed