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
If you increase the quantity of money, you bring about the lowering of the purchasing power of the monetary unit.
Interpretation
What this quote means
Increasing the amount of money in circulation diminishes its value, leading to reduced purchasing power.
This quote by Ludwig Von Mises highlights the fundamental economic principle that an increase in the supply of money, if not matched by an increase in the supply of goods and services, leads to inflation. As more money chases the same amount of goods, each unit of currency loses its ability to buy as much, effectively lowering the purchasing power of money over time.
Themes
MoneyInflationPurchasing PowerEconomics
In practice
Example use cases
In a discussion about economic policies, one might use this quote to illustrate the effects of increasing the money supply.
More from Ludwig Von Mises
All quotes βWars of aggression are popular nowadays with those nations convinced that only victory and conquest could improve their material well-being.
Ludwig Von MisesRead
Only stilted pedants can conceive the idea that there are absolute norms to tell what is beautiful and what is not. They try to derive from the works of the past a code of rules with which, as they fancy, the writers and artists of the future should comply. But the genius does not cooperate with the pundit.
Ludwig Von MisesRead
The most serious dangers for American freedom and the American way of life do not come from without.
Ludwig Von MisesRead
The public firm can nowhere maintain itself in free competition with the private firm; it is possible today only where it has a monopoly that excludes competition. Even that alone is evidence of its lesser economic productivity.
Ludwig Von MisesRead
Each epoch has found in the Gospels what it sought to find there, and has overlooked what it wished to overlook.
Ludwig Von MisesRead
Similar quotes
During the next four years...unless drastic steps are taken by Congress, the U.S. will have nearly 8,000,000 unemployed and will stand on the brink of a deep depression.
Henry A. WallaceRead
He who controls the money supply of a nation controls the nation.
James A. GarfieldRead
When money is free, the rational lender will keep on lending until there is no one else to lend to.
George SorosRead
It is worth noting that 'too big to fail' is not simply about size. A big institution is 'too big' when there is an expectation that government will do whatever it takes to rescue that institution from failure, thus bestowing an effective risk premium subsidy. Reforms to end 'too big to fail' must address the causes of this expectation.
Jerome PowellRead
Economics, as it is often taught today, portrays us as homo economicus-someone who doesn't vote in presidential elections, doesn't return lost wallets, and doesn't leave tips when dining out of town. Julie Nelson reminds us that most people aren't really like that. She helps point the way to a richer, more descriptive way of thinking about economic life.
Robert H. FrankRead
In America, people with lots of money can easily avoid the consequences of bad bets and big losses by cashing out at the first sign of trouble.
Robert ReichRead