The Road to De-Civilization: Inflation and the Moral Erosion of Society

  Inflation is not merely an economic issue; it deeply impacts the foundations of society and can lead to its breakdown. This text explores how inflation, primarily driven by government actions, distorts values and erodes moral standards in civilization.

Understanding Inflation

• Traditional Definition: Inflation was originally defined as the artificial increase of money and credit. Over the years, this definition has been diluted, now commonly referring to the rise in prices instead of the causes behind it.

• Austrian School View: According to the Austrian School of thought, inflation stems from the expansion of money supply, not from price increases themselves, which can be attributed to various supply and demand factors.

Consequences of Inflation

• Moral Erosion: Inflation distorts the understanding of economic values. It creates a system of deception in economic exchanges, as people are influenced to lie about their products and services, damaging trust and societal standards.

• Economic Dependency: Increased debt through inflation leads citizens to become financially dependent and erodes their personal integrity and self-reliance. This can replace individuality with a reliance on government support.

• Cultural Damage: Inflation fosters a materialistic society where personal happiness is sacrificed for monetary gain. This cultural shift negatively impacts the moral fabric and social standards of civilization.

Personal Experiences with Inflation

• Inflation affects daily lives and decisions subtly but significantly. As prices rise, families may change their spending habits, save less, or abandon long-term financial goals. The direct link between effort and reward becomes increasingly obscure, leading to societal shifts towards immediate gratification.

The Illusion of Stability

• Economic indicators may suggest that everything is stable, but the reality is that inflation harms those least able to protect against it, striking as an unseen tax. It disrupts the prudent and rewards reckless financial behavior, cultivating a culture less focused on future savings.

 Embracing Sound Money

• To recover from inflation's effects, societies must return to the core principles of honest money—money that retains its value and promotes true economic exchanges.

• Advocating for sound money is crucial for restoring trust and moral standards in society. The absence of sound money leads to degradation, while its presence supports civilization's flourishing and ethical standards.

• Ultimately, choosing sound money equates to choosing the maintenance and advancement of civilized society over descent into chaos.

https://mises.org/mises-wire/road-de-civilization-inflation-and-moral-erosion-society