If You Believe . . . . .
. . . any of the myths about money listed here, you probably shouldn’t vote, much less advise about finances.
If you wish to take financial advice from someone who exploits these myths, well, a fool and his money shouldn’t have gotten together in the first place. If the myth is perpetuated by a politician, please, don’t give them the power to force them into our reality by electing them.
Myth #1: Creating more money automatically causes inflation.
This is a widely believed leftover from the gold standard when it was semi-true. It has been the driving mentality for the concept behind austerity and the insistence that federal spending must be “paid for” via taxation. This is the logic of non-thinkers who are attracted to the simplicity they can grasp.
If the money supply isn’t expanded there is no way to fund economic expansion or population increases. This is somewhat masked by bank debt increases that “roll over” debt with expanding GDP growth, but in the end analysis all bank debt must be retired with money that only the federal government can create. Also, balancing the federal “budget” effectively steals the resources and labor that the government uses, clawing back all payments into the private sector for…
