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
There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.
Interpretation
What this quote means
Credit expansion can only lead to a financial crisis, and the timing of that crisis depends on when corrective measures are taken.
Ludwig Von Mises emphasizes the inevitability of an economic collapse stemming from unchecked credit expansion. He suggests that the economic system will ultimately face a crisis, and the only variable is whether society will proactively choose to curb credit growth, thereby facing a milder crisis sooner, or allow it to continue until an unavoidable and more severe catastrophe occurs.
Themes
CreditExpansionCollapseEconomyCrisis
In practice
Example use cases
This quote can be used in discussions surrounding financial policy reforms.
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