Libertarian Solutions to Inflation | learn freedom
Inflation has been the big problem of 2022. For almost everyone, the problem has become increasingly impossible to ignore. Prices continue to rise, the value of our savings declines. Inflation effectively steals our future.
But as long as half the country believes it is caused by the war in Ukraine, COVID, corporate profits, or that inflation like this is new and temporary, there will never be proper solutions. to inflation.
At best, it will be seen as one of those random issues that we have to deal with in a crisis. At worst, policies such as price controls and other government interventions will gain momentum.
Moreover, we must act to curb inflation with After freedom.
Since libertarianism is above all a humble ideology – it does not seek to have all the answers – this list will not be exhaustive. However, there are three main ways to fight inflation and its effects with more freedom.
The first and most obvious are policy changes. Since the policies of the Federal Reserve are what have led us to this pandemic, the first and most obvious solution is to permanently turn off the money printer, remove the ability of the US Federal Reserve to centrally control the entire US economy and allow something resembling competition to take over. .
Take the future of the economy out of the hands of seven bankers and put it back in the hands of entrepreneurs, consumers and American citizens. Finished the Fed.
It’s a big pill to swallow, though. So another thing that can ease the pain of inflation today is to lower import and export restrictions.
When the US economy is struggling, one of the things it can do is import goods from other countries to help consumers avoid highly inflated prices. For months, there’s been a nationwide formula shortage — not because there wasn’t enough formula in production, but because the Food and Drug Administration banned the importation. formula, even though it met roughly the same safety standards as American formula. Now that this restriction has been lifted, the shortage is on the way to being resolved.
Another broader example is the Merchant Marine Act of 1920, or the Jones Act. This law requires that all ships that transport goods into the United States be owned, equipped, registered and built by Americans.
If you think it must be a small number of ships, you’re right. These restrictions mean that the freighter fleet supplying imported goods for the entire United States is only 99 vessels. By some estimates, repeal of the Jones Act would reduce inflated shipping costs by up to 50% and bring temporary relief to Americans.
However, any libertarian who can only offer political solutions to problems is not very good, and there are two other major ways to help reduce the sting of inflation, and even ultimately solve it, without a single act from a politician. .
The first category is private market solutions. This includes driving the adoption of cryptocurrency. One of the most attractive features of e-currencies such as Bitcoin is the lack of centralized economic control. Instead of a central bank determining the value of money, users determine the value of money.
As a store of value, as of February 2022, the US dollar had lost 95% of its value against Bitcoin over the past five years. Moving people to decentralized currencies like Bitcoin may be the best inflation defense we have.
The final category is voluntary solutions for those who have been hit by the sting of inflation. Food banks have seen a significant increase in demand, but donations have dropped significantly. Claire Babineaux-Fontenot, executive director of Feeding America, the largest network of food banks in the United States, said: “You are in the middle of a battle and people are leaving the field.”
There are many other ways to help without donating to existing organizations. Host a Thanksgiving dinner. Bring a family home for Christmas. Pay someone’s utilities this month. A libertarian response to inflation should include investing our time and our money to serve those most affected by rising prices.
There is no single policy or program that has done more to steal our generation’s future than inflation. For all their importance, high taxes, strict regulations, and even restrictions related to social issues have not impacted my generation’s ability to live in our society, such as reducing by 97% reward for our work.
For the first time in over 100 years, Americans are listening. Their ears are pointed for the I-word. Why does it exist? Who is at fault? What can we do about it?
We have answers to all these questions. This is our best chance to stop the politicians from stealing our future. If we decide to take it.
Students for Liberty North America is launching a month-long campaign to educate Americans about the causes of inflation, the widespread impact of inflation, and libertarian solutions to inflation – Stop Stealing our Future. If you are a current student and would like to join the program, be sure to click the button below to get involved.
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This piece expresses the opinion of the author only and not necessarily the organization as a whole. Students For Liberty is committed to facilitating a broad dialogue for freedom, representing a variety of opinions.