The worst thing you can do to someone is to give them money they didn’t earn. Almost immediately it shrinks their potential. Nevertheless, our government insist on being the principal purveyor of free money. Look at the character deficiencies of those who have been getting the money for the longest time. The more money we pump into the high-crime areas the more the number of crimes. Despite these sorry results, the preferred solution is to hand out even more money.
Welfare spending by the government contributes to the massive government deficits. The government has money for every hardship or problem in the country. They waste untold quantities of dollars on endless social schemes, useless projects and unnecessary hiring. They send large amounts of money to countries around the world. They find new ways to waste money every year like the millions given to illegal immigrants.
Adherents of cryptocurrencies suggest their new money will prohibit wasteful government spending. That possibility is why government will have to throttle crypto. They can’t have competition, and the current statutes prohibit any kind of dual currency. The dollar rules domestically and the U.S. government will never give up its money monopoly. They have the ability to create vast quantities of new money and they don’t hesitate to do so when they feel it necessary. Eventually, they erode the purchasing power of the dollar as we see with today’s inflation. Contrast this monetary expansion to that of gold when it was money. Gold money could only be increased to the extent that new gold was mined. That was a 2%-3% increase annually. That fact caused economists like Ludwig von Mises to claim that this handcuffed the monetary authorities and was its chief excellence. That’s why the left hates gold. It puts a brake on their social spending.
As Mises wrote, “The gold standard has one tremendous virtue: The quantity of the money supply, under the gold standard, is independent of the policies of government and political parties. This is its advantage. It’s a form of protection against spend-thrift governments.”