Our Economy Needs a Good Dose of Customer-Driven Deflation

Posted by freedomforall 2 years ago to Business
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"Inflation is created by governments, so the solution to inflation is political. Governments and cronies falsely claim that inflation is good or even necessary, when it’s neither. It’s just best for elites. Deflation, on the other hand, comes naturally when customers are in control, and this customer-driven deflation brings sustainable investment and increased productivity. This is best for everyone.
Changing over from the current inflationary regime will be simple. All that’s needed is to stop granting crony banks the unconstitutional privilege to use fractional reserves, and to transform crony fractional-reserve banks into value-adding full-reserve banks, with a few simple actions:

Repeal banks’ privilege to hold fractional reserves.
Create and transfer to banks the quantity of money needed to back all current deposits with full reserves.
Transfer ownership of all bank assets to mutual funds. (Transferring ownership from the current owners is appropriate because the current owners are cronies who are accepting the banks’ crony privileges.)
Distribute the same fraction of shares in these mutual funds to every citizen. (Some people have had much value taken from them. Other people have been stopped from adding much or any value in the first place. This dispensation provides a simple, reasonable path forward.)
Repeal won’t require government people to administer new scope by promulgating new programs. After these one-time transfers of money and ownership, government people will be required to do nothing."
SOURCE URL: https://mises.org/power-market/our-economy-needs-good-dose-customer-driven-deflation

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