Mondays with Murray: Around the World with RothbardSubmitted by MarcMadness on Mon, 09/16/2013 - 10:17
The name “Murray Rothbard” is one that many statists and Keynesian economists pray will soon fade away into the night, relegated to conversations in libertarian nerd forums between basement-dwelling jobless anarchists. With the recent explosion in the ideas of liberty – owing much thanks to Ron Paul, Lew Rockwell, and others who have inspired this site and others in the same vein – it seems the name of Murray Rothbard and the ideas that come with it are not only sticking around, but are gaining more recognition than ever. With the advent of the internet, the libertarian movement is much more than an American movement, and the name Murray Rothbard is popping up all over the globe.
Shanmuganathan Nagasundaram writes in Forbes India, 9/14/13, “How the U.S. Created a Monster in the Federal Reserve”:
Money then is a “good” in much the same way cars, soaps and chocolates are. The market produces them in the quantity desired by consumers. One of the prevailing misconceptions about a gold standard is that world economic growth is held hostage to mining output. This is a very fundamental misconception about money, and as Murray Rothbard explains in What Has Government Done to Our Money?, the quantity of money circulating in the system is irrelevant. Whether we have six billion or just six million ounces of gold in circulation, or $5 trillion instead of the current $50 trillion, it does not matter. The prices of goods and services move up or down to adjust to the quantity of money circulating within the system.
Another popular misconception (and possibly the one that governments would like their citizens to believe) is that the gold standard caused the great depression of the 1930s and early 1940s. Again, as Rothbard would explain in America’s Great Depression, or, as Jim Rickards would point out in his recent book, The Currency Wars, the depression was not caused by the gold standard, but at least in part because the price of gold was artificially fixed at a lower value without accounting for the inflation of the roaring twenties.