Agitator Hour - NORFED - Use specie backed currency instead of Federal Reserve Notes

The Agitator ^ | 020206 | The Agitator

[CobaltBlue]

Prices have gone up but income has gone up at about the same rate. If you adjust for inflation, white men, all women, all blacks, and all non-Hispanic non-whites have all seen their income levels rise in real terms.

I think people's wants have increased. If you are willing to live like people did in the 1950's in a 1,000 sq. ft. house with one car, no air conditioner, no cable, no computer, all meals cooked at home, no fast food, no convenience food, etc. you can live on one income.

[savedbygrace]

You seem to have overlooked an important factor. Intentional or inadvertent?

[CobaltBlue]

If you mean taxes, I don't want to express an opinion because I haven't studied the history of taxes. I know the highest tax rate in the 1950s was 91%, which is much higher than it is now. I know there was no earned income tax credit then.

[savedbygrace]

Well, I have to say both of those factoids are irrelevant, but I appreciate your candor.

Without getting buried deeply in stats, one largely relevant measure might be the fact that the so-called Tax Freedom Day is significantly later than 30 or 40 years ago. That doesn't tell the whole story, but it goes a long way.

I'll concede that this part of the discussion is not strictly on-topic, but I trust you'll concede that it's so closely related that it shouldn't be dismissed.

[CobaltBlue]

I agree that it's not exactly on topic but interesting nonetheless.

I tried to research a little bit about income taxes on JSTOR, an on-line database of scholarly journals I can use, and came up with almost 10,000 articles. So I need to narrow the search term more than just "income tax."

[Pelham]

Tsk tsk. And here I thought we'd get an erudite description of the development of fractional banking from you, but noooo. Instead you have decided to help me with my abrasive manners. How lucky I am.

And now that you've expressed how unhappy you are at the treatment you've received, how about enlightening us on your theories about banking? I find them entertaining.

[Pelham]

Look for Selgin's Theory of Free Banking, you'll enjoy it. He believes a Free Banking regime would operate very much like the monetary system we have today.

Incidentally, the Real Bills doctrine is dangerously pro-cyclical, encouraging banks to create more and more credit as booms go along. It's one reason the Fed restricts its purchases to Treasury paper, except in rare circumstances when it needs to inject liquidity into the banking system.

[Deuce]

Pelham, you chastise savedbygrace as fitting von Mises reference to "monetary cranks" which you claim is discussed early in Human Actions. Upon searching for the word "crank" in Human Action, I find only five minor references to it. The first of these occurs after page 100 and the most extensive such reference is as follows:

There are men who are commonly stigmatized as monetary cranks. The monetary crank suggests a method for making everybody prosperous by monetary measures. His plans are illusory.

Where is the connection?

Also, you claim to be "amused" at what you believe to be savedbygrace's position on fractional reserve banking which you, presumably, assume is close to Murray Rothbard's position. Since Murray Rothbard's ideas are prominently presented at vonMises.org, I'm not sure I understand your utter disdain for this position. Can you clarify?

P.S. Have you checked out that definitive treatment of monetary money you thanked me for providing, last week?

[Grit]

Bump for later.