Freeman

ARTICLE

A Short History of Inflation

MARCH 01, 1962 by CECIL GROVE

Mr. Grove is a Chief Warrant Officer with the Adjutant General Division, United States Army Headquarters in Europe. The views expressed here are his own.

Government officials of post-World War I Germany deliberately em­barked upon a policy of monetary inflation as a means (they thought) of solving the country’s economic difficulties. They assumed that inflation could be controlled and that "a little inflation" would stimulate business and make for a healthy economy. The inevitable results of such criminal tinkering with a nation’s economy are starkly revealed in these figures from a German history book (Um Volksstaat and Völkergemeinschaft) published by Ernst Klett, Stuttgart, 1961, page 149) Prices in Germany (In Marks)

 

 

1914

1918 1922

1923

Summer

November

Potatoes (pound)

0.04

0.12

80

2,000

50,000,000,000

Egg (one)

0.08

0.25

180

5,000

80,000,000,000

Beer (glass)

0.13

0.17

60

3,000

150,000,000,000

Meat (pound)

0.9

2

1,200

90,000

3,200,000,000,000

Butter (pound)

1.4

3

2,400

150,000

6,000,000,000,000

 

Out of the economic chaos thus created came Hitler, World War II, and the omnipotent governments threatening our world today. The current crisis in Berlin is but another manifestation of the continuing conflict between insatiable government and freedom-oriented individual man. The nature of that conflict has not changed over the past six thousand years.

ASSOCIATED ISSUE

March 1962

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