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
Instead of presiding over an economic system that panders to big business and a wealthy elite, a more human economy must be established which meets the needs of African women and young people.
Winnie ByanyimaRead
No amount of debt restructuring, even debt forgiveness, will help the Greeks achieve real prosperity. What they need is not short-term relief but, rather, a long-term cure.
Edmund PhelpsRead
If you want a simple model for predicting the unemployment rate in the United States over the next few years, here it is: It will be what Greenspan wants it to be, plus or minus a random error reflecting the fact that he is not quite God.
Paul KrugmanRead
The reason we should do a carbon tax is because it's the right thing to do. It's economics 101, elementary stuff.
Elon MuskRead
The hidden hand of the market will never work without a hidden fist -- McDonald's cannot flourish without McDonnell Douglas, the builder of the F-15. And the hidden fist that keeps the world safe for Silicon Valley's technologies is called the United States Army, Air Force, Navy and Marine Corps.
Thomas FriedmanRead
Money differs from an automobile or mistress in being equally important to those who have it and those who do not.
John Kenneth GalbraithRead