Tuesday, May 28, 2013

War and Inflation Violate Property Rights

If people can trust the future they will have lower time preferences which will amplify the transforming capability of capital. There are very specific interventions into the economy that strongly influence the level of trust. If there is a tendency to choose war as the main or even as a viable alternative to diplomacy then the lessened trust that such an act engenders atrophies the economy. Or if there is a medium of exchange that can easily be debased by a central bank (for example, when there is a fiat currency) then the horizon of the time preference shortens, stifling prosperity. Both of these acts of intervention — war and inflation by the central bank — violate the property rights of humanity.

Those things that foster trust and trustworthiness need to be given particular emphasis as part of the learning process in the education system. The pivotal nature of property rights needs to be made crystal clear.

Divine Economy Theory Policy #6: War and Inflation Violate Property Rights

Policy Statement: War and its exorbitant costs and its associated destructiveness, and inflation of the money supply by the central bank, are unacceptable violations of property rights and those who try to impose either of these should be held accountable by legal means. Authority to take these actions (war and inflation) needs to be specifically assigned so that there is specific and definite accountability.

The legal liability for such acts needs to take precedence over the act itself. The government-created veils of self-protection and inculpability need to be removed so that property rights can be protected.

Twitter @DivineEconomy

Check out my new website: http://bruce-koerber.squarespace.com

No comments: