George Gilder: All Forms of Money Must Be Based on Time (VIDEO)

George Gilder is most recently the author the ground breaking The Scandal of Money: Why Wall Street Recovers but the Economy Never DoesHe is a founding fellow of the Discovery Institute and a senior fellow at the American Principles Project, which sponsored this book.

Gilder is also the author eighteen other well-regarded books including Knowledge and Powerand Microcosm. After the publication of Wealth and Poverty, he became Ronald Reagan’s most frequently quoted living author.

In the following clip — from a speech Gilder gave at FreedomFest 2016 — he explains how money, just like all forms of measurement, must be ultimately based on time:

But this is the great moment of opportunity as well as being a scandal. The opportunity has created again the efflorescence of the theory that began with Kurt Godel in 1931 when he showed that any logical system is necessarily dependent on propositions which can’t be proved within the system itself.

I think money is a logical system like that; it has to have roots and value outside of the system itself. Money cannot be part of what it measures. Money is not a commodity. This is the only relevant error I see in Austrian economics — that money is somehow a commodity.

…Money is [not a commodity], it is a measuring stick and it is necessary for a flourishing economy. It too has to be finally based on time. You can’t escape time; you can’t get away from time. When you try to do it, you just confuse everything.

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George Gilder: Angry About Inequality? Here’s the Real Culprit… (VIDEO)

George Gilder is most recently the author the ground breaking The Scandal of Money: Why Wall Street Recovers but the Economy Never DoesHe is a founding fellow of the Discovery Institute and a senior fellow at the American Principles Project, which sponsored this book.

Gilder is also the author eighteen other well-regarded books including Knowledge and Powerand Microcosm. After the publication of Wealth and Poverty, he became Ronald Reagan’s most frequently quoted living author.

In the following clip — from a speech Gilder gave at FreedomFest 2016 — he discusses how near-zero interest rates, far from stimulating economic growth, actually create an environment which fosters inequality.

Zero interest rates essentially zero out time.

As Hayek put it, the root and source of all monetary evil is the government monopoly of money. Matt Ridley said the government monopoly of money not only suppresses innovation and creativity, not only retards growth, it also fosters inequality. Because what we have today is a bifurcated economy produced by the government monopoly of money that fosters inequality.

Think of most of us. Most of us get paid by the hour, paid by the day. We are inexorably caught in the economy of time; that’s how we get compensated. But what’s happened in the world economy in recent decades as a result of the government monopoly of money and that exploitation of that government monopoly to allow the unlimited expansion of government power through the creation of money.

What’s happened is a financialization, a hypertrophy, of finance in the world economy.

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George Gilder: Money Is a Measuring Stick, Not a Magic Wand (VIDEO)

George Gilder is most recently the author the ground breaking The Scandal of Money: Why Wall Street Recovers but the Economy Never DoesHe is a founding fellow of the Discovery Institute and a senior fellow at the American Principles Project, which sponsored this book.

Gilder is also the author eighteen other well-regarded books including Knowledge and Power and Microcosm. After the publication of Wealth and Poverty, he became Ronald Reagan’s most frequently quoted living author.

In the following clip — from a speech Gilder gave at FreedomFest 2016 — he discusses why government ought to consider money as a measurement of value rather than as a magic wand to create growth:

If money is not an instrument of power, not a magic wand that governments can wave to summon economic growth, what is it?

I’ve been pondering this issue for many years and I didn’t get it right in Wealth and Poverty. Steve Forbes gave me the key insight when he began focusing on money as a clock or as measuring stick. He used the analogy of a clock. If a measuring stick is changing constantly, how can enterprises use money as a guide to their learning processes. If the clock was changing day by day; the hours change, the minutes change, as Steve pointed out, we would soon have times of false obligations — you would have to be constantly hedging the clock.

And that’s really what’s happening, because I believe that most fundamentally, money is time.

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George Gilder: This Simple Theory Explains the Success of Capitalism (VIDEO)

George Gilder is most recently the author the ground breaking The Scandal of Money: Why Wall Street Recovers but the Economy Never DoesHe is a founding fellow of the Discovery Institute and a senior fellow at the American Principles Project, which sponsored this book.

Gilder is also the author eighteen other well-regarded books including Knowledge and Power and Microcosm. After the publication of Wealth and Poverty, he became Ronald Reagan’s most frequently quoted living author.

In the following clip — from a speech Gilder gave at FreedomFest 2016 — he discusses how information theory relates to money and why all wealth is fundamentally knowledge:

…A professor at MIT named Cesar Hidalgo recently gave a good example to help you understand this concept. When an expensive car crashes into a wall, all its value disappears, although every molecule and atom remain. Value is information, the car is knowledge. And I can prove that all wealth is essentially knowledge.

…I believe that if wealth is knowledge, then growth is learning. Now to have learning, certain rules apply. Learning is most essentially experimental. If outcomes are guaranteed, learning is essentially prohibited.

…The reason capitalism is such an engine of learning and thus an engine of economic growth is because every business plan can fail; bankruptcy is possible. But if you have government guaranteeing everything by printing money whenever any enterprise is in jeopardy of falsification or bankruptcy then learning is prohibited. So the very policy that government follows to guarantee growth, intrinsically thwarts growth by arresting the learning process — by falsifying the learning process.

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Acton Institute Praises Gilder’s New Book “The Scandal of Money”

Earlier this year, American investor, economist, and scholar George Gilder released a ground-breaking new book on global economics called The Scandal of Money: Why Wall Street Recovers but the Economy Never Does.

Gilder’s book has drawn praise from luminaries like former senator Jim DeMint, entrepreneur Peter Thiel, and CNBC’s Larry Kudlow.

In the summer 2016 edition of the Acton Institute’s journal, Religion and Liberty, Stephen Schmalhofer added his name to the list of people who enjoyed The Scandal of Money:

Perhaps the only futurist worthy of that grandiloquent title, Gilder draws on a lifetime of insights into entrepreneurship and innovation to consider the problems caused by the present state of American money. Generously sharing his pages with the best underappreciated thinkers, like 20th-century French economist Jacques Rueff, and introducing relevant innovations in information technology, Gilder considers possible solutions: a modernized gold standard and decentralized digital currencies like Bitcoin. Gold and Bitcoin both offer the advantage of irreversibility, desirable in the same way that the results of an experiment should not be manipulated after their collection. Lacking a philosopher’s stone, we must expend time in the form of capital and labor to produce more gold. Mined not from the ground but through advanced mathematics, digital currencies like Bitcoin defeat attempts at counterfeiting with timestamping. Their irreversibility is anchored in the scarcest resource—time. In the author’s imaginative prose: “Sound money requires hostility to time travel.”

If Trump and Sanders are the tribunes of anxious middle Americans, failed monetary policy is partly responsible for their rise.

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