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This is a libertarian talking point. The idea is that government control of money leads to less private innovation. We had the industrial revolution in the late
by dumbfoundded 7y ago
This is a libertarian talking point. The idea is that government control of money leads to less private innovation. We had the industrial revolution in the late 19th century while on the gold standard and now with government-controlled money, most of the long term innovation like renewable energy, nukes, the internet are all funded by the government.
It has almost nothing to do with this article.
- appleshore 7y agoLow interest rates certainly lead to non-optimal housing development. I completely support massive government funding of energy, nuclear, technology and research. But I don't support the NY Fed and the bank CEOs controlling the open markets, setting the interest rates and flooding dumb "elite" investors with cheap money so they can build bad systems. Having 1 of 12 FRBs dominate the monetary system is a flawed idea, especially when that 1 is Wall Street. Financial engineering is dangerous and antithetical to real research, development and progress.
- md_ 7y agoThat's an argument. But it seems to me still a far cry from arguing that cheap capital leads to less innovation--in effect, that dumb money drives out the smart.
- chrisco255 7y agoWe were on the gold standard until 1971, so most of the tech you just mentioned were developed while on a gold standard.
- dumbfoundded 7y agoWell technically yes. It effectively died in the 1930s when England stopped using it and the US forced citizens to hand over all gold. Its peak in usage was ~1870 to ~1910. https://www.investopedia.com/ask/answers/09/gold-standard.asp https://www.investopedia.com/ask/answers/09/gold-standard.as...
- chrisco255 6y agoWe were still on the standard through the 70s, but FDR and company did devalue the dollar with respect to gold during the 30s to finance all the New Deal programs. Bretton Woods in 1944 re-established the gold standard for the dollar and then all other currencies were pegged to the dollar and that continued until 1971, when Nixon "temporarily" suspended it, effectively creating the modern fiat boondoggle we have today. https://en.wikipedia.org/wiki/Bretton_Woods_system https://en.wikipedia.org/wiki/Bretton_Woods_system
- 8note 7y agoI'm perfectly ok with private mercenary groups not developing their own nukes.
- dumbfoundded 7y agoMe too. I'd be ok with lots of governments not developing nukes either. Or those that already have to significantly reduce their nukes. Nukes suck. Atomic energy though is pretty awesome. We could already have 100% stable, constant CO2-free energy if an entire generation of Americans didn't grow up watching the Simpsons