Sound money limits government power from "summary" of The Fiat Standard by Saifedean Ammous
Sound money limits government power by preventing the government from inflating the currency supply at will. When money is sound, it is difficult for the government to manipulate its value for its own benefit. This means that the government cannot simply print more money to fund its projects or programs without facing consequences. In a system of sound money, the government must operate within the constraints of a fixed money supply, which limits its ability to spend beyond its means. This forces the government to prioritize its spending and make difficult choices about where to allocate resources. Without the ability to simply create more money out of thin air, the government is forced to be more responsible and accountable to its citizens. Furthermore, sound money limits government power by providing a check on inflation. When the money supply is stable and not subject to constant manipulation, prices tend to remain more stable as well. This means that individuals can better plan for the future and are not at the mercy of sudden spikes in prices caused by government intervention. By limiting the government's ability to inflate the currency supply and manipulate its value, sound money helps to preserve the purchasing power of individuals and protect them from the negative effects of inflation. This allows individuals to save and invest with confidence, knowing that their hard-earned money will not be eroded by government policies.- Sound money acts as a safeguard against government overreach and abuse of power. By imposing discipline on the government's spending and preventing it from debasing the currency, sound money helps to protect individuals from the harmful effects of excessive government intervention in the economy. In this way, sound money serves as a bulwark against government tyranny and ensures that individuals retain control over their own financial destinies.
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