Ep 9 - How to cure inflation [6 / 7]. Milton Friedman Free to Choose (1980)

While many people a good idea of what is inflation, few people really understand their root cause. There are many popular scapegoats: the unions, corporations, consumers spendthrift, greed, and international forces. Dr. Friedman said that was the root cause of a government, the sole control of the money. Friedman says that the solution to inflation well below those that have the power to stop known simply slow down the speed with which it is printed with the new currency. ButGovernment is a major beneficiary of inflation. be pushed to inflate the currency, tax revenues rise as families in higher income tax bracket. Sun inflation transfers wealth and resources from the private to the public. In short, inflation is of interest to the government because it is a possibility of increasing taxes, is not to pass new laws to increase taxes. Inflation is taxation without representation, in fact. controls of wages and prices are not the cure forInflation, as only treat the symptom (price increases) and not the disease (monetary expansion). History shows that such controls do not work, but have perverse effects on both prices and economic growth and undermine the fundamental right to economic productivity. There is only one cure for inflation: slow down the printing presses. But the healing of the painful side effects produced by a temporary increase in unemployment and lower economic growth. It takes considerable politicalCourage ...