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Read e-book online An Introduction to Christian Economics PDF

By Gary North

An try and set forth the biblical presuppositions in different zone of economics, yet essentially within the box on financial concept.

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S The addict’s body continues to 8. , p. 224. 38 An Introduction to Christian Economics decline, and the economy also deteriorates. New bankruptcies, soaring prices, disrupted production are everyday occurrences. , “true” apart from monetary inflation. Another fact that is not generally realized is that the price level may remain somewhat stable while inflation is going on. Just as the . addict can take a small quantity of a drug and still seem normal, so the productive economy can seem healthy.

Our Volkswagens and Opel Cadets and Elna sewing machines would cost us more. This will tend to raise prices even higher in America. Such a devaluation would hurt our prestige abroad in Europe, especially if we were to devalue without a prior consultation with our allies. No one wants to lose prestige, especially Mr. Nixon. The Intelligent Woman’s Guide to In@ion 27 The only alternative, ,in the short run, is to establish what economists call floating exchange rates. This sounds very technical, but it only means that the free market would decide how much a dollar is worth in relation to a French franc or an English pound.

Foreigners spend fewer of their dollars on our goods. Simple? Here is where the trouble begins. In order to encourage foreigners to buy our securities and bonds (and thus to discourage them from buying our gold), we have to offer them high rates of return for their money. This means we have to pay out high. interest rates. But high interest rates adversely affect the rate of growth in our economy. We have to pay more for the loan that enables us to buy a new house or a car; businessmen are forced to pay more to obtain the funds necessary to build new factories and employ more workers.

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