Marxism Unmasked from Delusion to Destruction.pdf 7471KB
Marxism Unmasked from Delusion to Destruction.pdf 7471KB
Marxism Unmasked from Delusion to Destruction.pdf 7471KB
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MONEY. INTEREtT. AND THE BUSINESS CYCLE<br />
rxpamion—bad modi kiager and moie icnous consequences than chose<br />
< rises in p icicding dnieE. Of coune. die Mandans say. every cnsis muse be<br />
v.f>rse and wone; die Rtwwam. diey sa>'. ha\r no trade cycle. Of course the<br />
|< uMians don't; they hii^c a dqwrsision all the ame.<br />
We muse realize die ormendous **p«>'cholof(ical" importance, the<br />
enormous importance of the (act thai m the hi«or>- of the nineteenth and<br />
twentieth centimes, cirdtl expansion w» limited. Nesrrtheless. it y^'^^ the<br />
grneral opinion of bustneiMnen. economttts. tutetmen. and the people,<br />
tluf bank credit expansion wa% neceniarv-. that the rate of interrM was an<br />
olntacle <strong>to</strong> pfosperir>'. *nd that an ''easy monc>" polio- wa* a ^xxl polic>'<br />
Ci> have. Evrryonc. busineiMiien as weU as economists, considered credit<br />
expansion necciMfy and diey became very angry if somebods* tried <strong>to</strong> say<br />
diat 11 might have some drawhacks At the end of the nineteenth century.<br />
n was conuderrd practically indecent <strong>to</strong> support the Briitih Currency<br />
St hool. which was opposed fo crrdii e«pafnion<br />
When 1 sianed <strong>to</strong> tiudy the iheorv* c«f nMme>- and credit 1 found in the<br />
svhole world of literature only one Itsnng author, a Swedish economist.<br />
Knut Wicksell |18S1-1*/26|. who really saw the pn>bletm in credit expan-<br />
sion.' The idea pcrvaik even <strong>to</strong>day that we cuinai do without crrdii<br />
expansion It will be impovubte. wtthcMJt a srrs* «cr<strong>to</strong>ut tiruggle which<br />
rrally has <strong>to</strong> be fought, lo defeat all fhoM- ideological forces that are oper-<br />
Jting in fasn wiihtmi rrprr%enia-<br />
iion" Howrsrr. govrrnments beliesr the> cannot aik iheif uti/ein <strong>to</strong> pas-<br />
as much in uxes as n needed <strong>to</strong> cosrr the whole tt( government<br />
expenditures. When gmrrnmenti cmwo* cosrr their expenses out o(<br />
legally eiucied taxes. ihe>' borrow frcnn the commercial banks and so<br />
expand credit Therefore, reprcsentattsr gcnrrnment an actually be the<br />
insogi<strong>to</strong>r of credit expansion and inflation<br />
4 [Knut WKbdl.JbMMsf«»ilVtin (New Vbrk Macmdbn. (ItfM) 1936) -£J i<br />
73
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