The idea that political freedom can be preserved in the absence of economic freedom, and vice versa, is an illusion. Political freedom is the corollary of economic freedom.
Ludwig Von MisesRead
The gold standard did not collapse. Governments abolished it in order to pave the way for inflation. The whole grim apparatus of oppression and coercion, policemen, customs guards, penal courts, prisons, in some countries even executioners, had to be put into action in order to destroy the gold standard.
Interpretation
What this quote means
The quote highlights how governments chose to abandon the gold standard to enable inflation, necessitating oppressive measures.
Ludwig Von Mises points out that the gold standard was not dismantled due to its failure, but rather intentionally abolished by governments. This decision required a significant and coercive state apparatus to enforce changes that would facilitate inflationary policies, showcasing the lengths to which authorities have gone to disrupt a stable monetary system based on gold.
Themes
Gold StandardInflationGovernmentOppressionEconomics
In practice
Example use cases
This quote can be used in an economic debate about the effects of abandoning the gold standard.
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