unemployment and for them deflation is the opposite to inflation. If freedom and justice were really causing harm, even if only in temporary side effects, as here supposedly in the monetary sphere, then the statist "security" addicts would never subscribe to them. Unfortunately, most libertarians as well as all welfare statists have still to learn that security against inflation and unemployment can be obtained only through monetary freedom. They have still to fully understand what inflation means, what causes it and what it leads to - and then how it could best be prevented. They have to become better advocates of freedom or will have to continue suffering under monetary despotism. I THE VIEW THAT ENDING INFLATION MEANS UNEMPLOYMENT IS WRONG ON THE FOLLOWING 10 POINTS ("COUNTS" in the original. J.Z., 1999.) --------------------------- 1. The popular view overlooks that both, inflation and unemployment, coexist always under monetary despotism - at least to some extent and sometimes to an extreme degree, as e.g. presently under "stagflation" (Stagnation in the middle of a 2-digit inflation). Any rapid inflation does also, after a time lag, produce a large-scale unemployment. This kind of unemployment is brought to an end and not increased by ending inflation. One simple explanation for this phenomenon lies in the fact that capital is either a) held back in times of recognized inflation with its uncertainties and certainties of losses - in something like a capital strike, b) consumed to a large extent, rather than invested at a loss, c) put into wasteful and unproductive investments like unused land or gold holdings, or d) used in malinvestments, due to deceptive paper profits which in reality hide losses and lead lastly to the closure of enterprises. As soon as inflation is obviously ended and e.g. at least the hoarded and non-productively preserved capital becomes again available to finance employment, then, and to that extent, would th...
