The fiat standard fuels government overreach from "summary" of The Fiat Standard by Saifedean Ammous
The fiat standard is a system in which the value of money is not tied to any physical commodity, but is decreed by governments. This gives governments the power to create money out of thin air, which they can then use to fund their activities. The ability to print money at will is a seductive power for any government, as it allows them to spend without limit. The problem with this is that when governments have the ability to create money at will, they have a strong incentive to overspend. This can lead to inflation, as the increased supply of money reduces its value. Inflation is essentially a hidden tax on the population, as it erodes the value of their savings and income. In order to combat inflation, governments often resort to price controls and other forms of intervention in the economy. This can lead to shortages and distortions in the market, as prices are no longer able to accurately reflect supply and demand. Furthermore, the ability to create money at will also gives governments the power to manipulate interest rates. This can lead to misallocation of resources, as artificially low interest rates encourage malinvestment and speculative bubbles.- The fiat standard fuels government overreach by giving governments the power to spend without limit, eroding the value of money through inflation, and distorting the economy through price controls and interest rate manipulation. This is why it is important to question the legitimacy of the fiat standard and advocate for a sounder monetary system.
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