Please note that this is not the official position of the Libertarian Party of Oregon. This is an example of thought as viewed through the lens of liberty and freedom.
Libertarians embrace free market economics. Libertarians tend to gravitate to the Austrian School of Economics. Austrian School theory is the science of human action called praxeology. Austrian School economics is an understanding of the logic of how humans act to stimulus within their economical environment also called purposeful human action. A free market is the greatest tool to keep a business honest. Nothing will punish a business greater than a poor decision in a free market. A free market is the best way to keep the economy stable. All economies will have fluctuations and adjustments as innovations, natural disasters and etc… change the economic landscape. Note that a free market does not mean “no rules”. There will always be objective rules; however, there should be a total separation of the government from the economy.
Currency should be backed by a commodity. Humans have traditionally gravitated towards gold for this purpose. A fiat currency, one that comes off a printing press or that is digitally created by a computer program, is highly volatile and destructive as history has demonstrated time and time again. Giving the government the monopoly on currency creation has distorted our cultures, our society, our health, family units and our peace. From making families irrelevant for children to be raised in, to violent militarism across the world’s landscape it has all been funded with currency created out of thin air. As the currency supply increases, called inflation, businesses make poor decisions and allocate resources that appear to be good investments but are not due to the economic illusion created by central banking and fiat currency. These poor decisions are exposed during a crash, a recession, and or depression. The inflation of the currency also devalues a societies’ money. The average citizen sees this as rising prices. Also note that the first people, the politically connected banks, who get this newly created money, are able to make huge profits off of this money creation. By the time this newly created money reaches the citizen’s pocket it has been devalued. Thus the rich get richer through cronyism.
This topic is far too vast to cover in a couple paragraphs. Just note that central banking has never worked and never will for it goes against all sound economic principles. The central planners look at the economy as a machine to be dialed in here and there but all they are accomplishing is temporally patching holes in a sinking boat. The following are some quick reads to get a good primer and understanding of our current central banking system and its destructive behavior all in the name of cronyism and at the cost of the average person.
- End the Fed
- Economics in One lesson
- Whatever Happened to Penny Candy