Inflation Makes The Extension Of Socialism Possible

The Way To Get A Maximum Rate Of 'economic Growth' Assuming This To Be Our Aim - Is To Give Maximum Encouragement To Production, Employment, Saving, And Investment. And The Way To Do This Is To Maintain A Free Market And A Sound Currency.

To Try To Cure Unemployment By Inflation Rather Than By Adjustment Of Specific Wage-rates Is Like Trying To Adjust The Piano To The Stool Rather Than The Stool To The Piano.

The Long-run Historical Tendency Of Capitalism Has Not Only Been To Increase Real Incomes More Or Less Proportionately Nearly All Along The Line, But To Benefit The Masses Even More Than The Rich.

The Most Obvious And Yet The Oldest And Most Stubborn Error On Which The Appeal Of Inflation Rests Is That Of Confusing ‘money’ With ‘wealth’…real Wealth, Of Course, Consists In What Is Produced And Consumed: The Food We Eat, The Clothes We Wear, The Houses We Live In. It Is Railways And Roads And Motor Cars; Ships And Planes And Factories; Schools And Churches And Theaters; Pianos, Paintings And Books. Yet So Powerful Is The Verbal Ambiguity That Confuses Money With Wealth, That Even Those Who At Times Recognize The Confusion Will Slide Back Into It In The Course Of Their Reasoning.

A Certain Amount Of Taxes Is Of Course Indispensable To Carry On Essential Government Functions. Reasonable Taxes For This Purpose Need Not Hurt Production Much.