Sunday, August 4, 2013

The Yin and Yang of Government Power

One of the areas where government would like to have absolute control is in the area of money creation. By having control of money creation, the government can, of course, control a monetary spigot that allows it to spend well beyond its ability to the raise funds via taxation and borrowing.

That said, it is instructive to understand the many ways the free market is attempting to circumvent government monopoly of money control. It is an object lesson in understanding that government is not all powerful and that there is a yin and yang to government power. At times, there can be a major jump in government power in a sector, but, over time,  a counter response from the free market can occur that is difficult for the government to understand and defeat. Below is an important TED talk delivered by Paul Kemp-Robertson. He discusses the many points of free market responses to government money. He is a little weak in understanding completely how and why these currencies are emerging and doesn't seem to understand their emergence in relation to Ludwig von Mises' Regression Theorem, but it is a solid tour of the early-stage free market counter punch to government money.

Taken with a wide spectrum view, it is a great sign of hope that shows how free markets can emerge to counter government power.

No comments:

Post a Comment