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Capital needs to be preserved. Economic growth requires strong property rights to encourage people to save and invest. Sustaining large populations of people requires economic growth through capital goods and innovation. Taxes and debt destroy civilizations.

- H.-H. Hoppe

Well, that's what happens when you leave socialists ruling a country for too long. Incompetence at highest level.

theguardian.com/world/2018/sep

It's disheartening to see statists and tax apologists even among maximalists.😐

Tom Jeff boosted

@r1776 The best thing I could hope for is that the kind of people who prefer to be alone in the library doing research all day or in the studio creating art are given the financial freedom to do so. There's an incalculable amount of time and energy being wasted on working to make ends meet.

Time preference also regulates economic exchanges between you and your future self.

The more you care about your future self, the lower your time preference.

Scammers are enemies of argumentation ethics, property rights, logic, and truth.

And, one should "never interrupt your enemy when he is making a mistake."

"If it were really possible to substitute credit expansion (cheap money) for the accumulation of capital goods by saving, there would not be any poverty in the world."

- L. von Mises

5/5

"Thus, just as insurance premiums are the price paid for protection against risk aversion, so cash holdings are the price paid for protection against uncertainty aversion."

-H.-H. Hoppe

4/5

"Only present, instantly serviceable goods can protect against unpredictable contingencies (uncertainty). Nor does a man want to invest in consumer goods for uncertainty protection. For an investment in consumer goods, too, is an expression of certainty concerning specific momentary or immediately impending wants. Only money, on account of its instant and unspecific wide-ranging salability, can protect him against uncertainty."

-H.-H. Hoppe

"In distinct contrast, insofar as man faces uncertainty he is, quite literally, not certain concerning future contingencies, i.e., as to what he might want or need and when. In order to be protected against unpredictable contingencies at unpredictable moments, he cannot invest in producer goods (as in the case of risk insurance); for such investments would reflect his certainty concerning particular future needs."

-H.-H. Hoppe

"... as man faces a risky future he does not need to hold cash. [...] to be protected against risk, he can buy or produce insurance. The [...] money that he spends on insurance is an indication of [...] his aversion to risk. Insurance premiums are money spent, not held, and are [...] invested in the physical production structure of producer and consumer goods. The payment of insurance reflects a man's subjectively felt certainty concerning (predictable) future contingencies (risks)."

-H.-H. H.

Risk vs Uncertainty: A Reason to Hodl

"Risks (instances of class probability) are contingencies against which it is possible to take out insurance, because objective long-run probability distributions concerning all possible outcomes are known and predictable. We know nothing about an individual outcome, but we know everything about the whole class of events, and we are certain about the future."

-H.-H. Hoppe

"... the cost of maintaining the existing level of welfare distribution will be higher now than before, and in order to finance it, even higher taxes and more wealth confiscation must be imposed on the remaining producers. The tendency to shift from production to nonproduction activities will be further strengthened, leading to continuously rising time-preference rates and a progressive decivilization - infantilization and demoralization - of civil society."

- H.-H. Hoppe

The importance of low time-preference.

"It is not the availability of resources and technical or scientific knowledge that imposes limits on economic advancement: rather, it is time preference that imposes limits on the exploitation of actually available resources as well as on the utilization of existing knowledge (and also on scientific progress for that matter, insofar as research activities, too, must be supported by saved-up funds)."

- H.-H. Hoppe

3/3

"Simultaneously, the saver-investor initiates a "process of civilization." In generating a tendency toward a fall in the rate of time preference, he--and everyone directly or indirectly connected to him through a network of exchanges-matures from childhood to adulthood and from barbarism to civilization."

- H.-H. Hoppe

2/3

"In addition, as an indirect result of the increased real incomes brought about through savings, nutrition and health care improve, and life expectancy tends to rise. In a development similar to the transformation from childhood to adulthood, with a higher life expectancy more distant goals are added to an individual's present value scale. The marginal utility of future goods relative to that of present ones increases, and the time-preference rate declines further."

- H.-H. Hoppe

1/3

Effects of hard money:

"Moreover, in an exchange economy, the saver-investor also contributes to a lowering of the time-preference rate of nonsavers. With the accumulation of capital goods, the relative scarcity of labor services increases, and wage rates, ceteris paribus, will rise. Higher wage rates imply a rising supply of present goods for previous nonsavers. Thus, even those individuals who were previously nons avers will see their personal time-preference rates fall."

- H.-H. Hoppe

Bitcoin is an all-conquering juggernaut positive feedback loop of economic incentives.
- @saifedean

Capital needs to be preserved. Economic growth requires strong property rights to encourage people to save and invest. Sustaining large populations of people requires economic growth through capital goods and innovation. Taxes and debt destroy civilizations.

- H.-H. Hoppe

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