Friday, September 01, 2006

Leftist Mike Whitney Once Again Presents Sound Monetary Analysis

Usually leftists are as confused on the issue of monetary economics as they are with regards to other aspects of economics. Their pro-inflationists stance probably stems from the illusion that rich people are like Disney cartoon duck Scrooge McDuck have all of their wealth in the form of cash or in bank accounts or bonds and that inflation thus makes the rich poorer.

Mike Whitney at leftist Counterpunch seem to realize that inflationist monetary policies in fact makes the rich richer as they usually have their wealth in fixed assets and stocks and as inflation usually raises product prices before wages, it redistributes from workers to capitalists. I have previously mentioned his unusually insightful writings, linking to this article where he indicts Alan Greenspan for creating the housing bubble which creates economic distortions and increases economic inequality.

Now he have a new article on the subject where he points to the trouble bursting of the Greenspan-inflated bubble will create.


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