Elizabeth Warren has aired her 5 or 10 year central planning scheme named Economic Patriotism. The inane plan is a disaster, which is why she’s recovered ground among Democrats after her genetic scandal. The plan’s idiocy is why it’s supported by Robert Kuttner, a man who reliably indicates stupid communist-inspired policies that should not be adopted.
One of Warren’s planks is “More actively managing our currency value to promote exports and domestic manufacturing.” [Her emphasis.] She wants to depreciate the dollar relative to foreign currencies. This means she wants higher inflation. This won’t solve any economic problems we may have, and it will surely add new problems.
All government actions to manipulate currencies for the benefit of their local economies are doomed to failure. The real costs will be felt sooner or later. See here for some history of major disasters consequent to currency manipulations.
If current economic travails can be blamed on currencies disturbing economic decisions and leading us toward more crashes and depressions, then the culprits are central banks and fiat currencies already being manipulated by governments. Further manipulation isn’t going to remedy anything or prevent future economic disasters.
The way out is a metal standard, such as silver or gold coins. A dollar would be a fixed weight of the standard metal. That would be the dollar’s definition. A metal standard has many advantages. One is to integrate all the local currencies worldwide, because all will be convertible into certain fixed quantities of metal and therefore convertible into one another at known ratios.
Communist-lite, socialist-lite and fascist-lite plans like those of Warren only regiment us at great cost. They only destroy domestic peace and liberty. They only hamper our progress. They are all stupid and ridiculous, because by now we should know that they get us nowhere. We should be looking to dismantle our already existing such departments and plans that form much of our government institutions. Warren’s plans are a throwback to the totalitarian 20th century under the guise of helping American workers.
9:46 am on June 10, 2019
