Mises.org

1. Statism Stands against Free Trade and Free Association

   Free trade has its enemies on the left and the right. However, despite the supposed “sophistication” of their antitrade arguments, when we break them down, those arguments really are sophistry.

    

   Original Article: Statism Stands against Free Trade and Free Association

2. Thanks to Our Fall Campaign Donors

   Thanks to all of our generous donors who are participating in our 2023 Fall Campaign.

   Your continued support is vital and much appreciated. Donors are added daily.

   Won't you join them?

    

   Monday, September 25

   Abdelhamid Abdou Adam Battles Adam Deng Alan Zibelman Andreas Hübner Anonymous Andrew Windsor Arthur Knolle Anonymous Barb Whiteman Bridget Santos Carl Chambers Carlos Aixerch Mateu Charles Crawley Charles Demastus Chris Lingwall, In honor of Milton Friedman and Thomas Sowell who opened my eyes 50 years ago Chris Striebeck Christopher Sears Cristina Fontaine Dan Zipay Daniel Krivickas, In memory of True Liberty and Economic Freedom Darlene Corbett Dave Benner David Cardaronella David Neilson David Shane David Stefan Davide Tafuri Dione Durham Don Bellante Donald Steele Doug Hill, In honor of Ron Paul Douglas Haaga Dustin Trammell Eric Hale Ezra Goldman Fred Witthans Gerard Evenwel Greg Krabbenhoft Gregory Citarella Howard Killebrew Hugh Kendrick Hunter Lewis

   Iain Greum Jacob Coffin, In Honor of Hans-Hermann Hoppe and the book he wrote, Democracy: The God That Failed James Irwin Javier Antonio Quiñones Ortiz Javier Pantoja Romero Jay Korinek Jeanne Kacprzak Jeffrey Yerkes Jerome Gloekler Jerry Knarr Jesse Cowell, In honor of William Anderson Jesse Dugay Jim Agelopoulos Jo Ann Cavallo John Bzoski Anonymous John Jolly Joris Debats Joseph Wilchek, In honor of Tom Woods Joshua Bozzick Kathryn Hamilton Kenneth Woods, In memory of Milton Friedman Kerry Steen Kevin Alons Kim Stephens Kristin Jackvony Lawrence Hamilton Linda Nico Lukas Abelmann Manuel Heel, In honor of Manuel H. Mark Markic Martin Jacovini Martin Young Marvin Graham, In memory of Charlotte Kay Graham Mary Sullivan Maureen Moore Miguel Gracia Arias, In honor of Miguel G. Moreu Mike Keenan Nancy Ore, In honor of the Mises Institute Nguyen Hoang Duc Noah Van Horn

   Paris Bleicher Paul Bunevich Paul Cerino Paul Jacobus Peter Michel Peter Morcombe Peter Rasmussen Pitipong Wanta Randy Boring Ray Svobodny Reed Scercy Richard Krebs Richard Muldoon Richard Page, In honor of Lahaina Condo Richard Pardo Robert Cerf Robert Chandler Robert Yabut Roberto Mello, In honor of Dra. Sonia Lafayette Rodger Cottrell Roger Woodward Ronald Banner Ronald Langdon Sami Peltola Sayre Powers Sheldon Hayer Sing Chung Stelio Pesciallo Stuart Hicks Tamara Goforth Theodore A. Gebhard Thomas Culver Timothy McMullan Tony Fulgenzi Tyke Conrady Tyler Hoxie Tyler Wambeke Vernon Moret Victor Sola Walter Block William Camp William Winters

    

   Tuesday, September 26

   Alessandro Artini Alex Kral Angela and Roger Box Ash Navabi Barry Linetsky Bart Mills Bitcoin Anonymous Brandon Harnish, In honor of Paul Michelson Burley Stewart Carson McCurdy Anonymous Dan Heinig Darryn Call Dennis Gilman, In memory of Chesley H. Gilman Eric Russell Gary Godley Gary Schreyer Gui Lopes Harry Morse Ivan Pedro Jimenez Correal

   James Kerner James Roberts Jason Swiatek Joe Kleca Anonymous John Pritchett Jorge Oliveira Dias Katherine Yoder Keith Brilhart Leonid Golender Lori McKenna, In memory of Charles Scarborough Lucas Goetz Anonymous Mark McGuire Matthew Gunnell, In honor of Liberty Maxime Hupé

   Michael Harvey Michael Mienko Michael Stankevich Miguel Ángel Alarcos Torrecillas Nathan Harper Nelly Smith Raul Brito Richard Paquette Robert Gaines Robert Zumwalt Robi Chatterji Anonymous Skylar Webb Steven Dusterwald Steven Miller Takashi Kimura Thomas Lonergan Vanner Ferreira da Silva Wayne K. Ford Zachary Bryson

    

   Wednesday, September 27

   Amy LePore Andrew Fitzgerald Andrew Quinn Anonymous Antonio Ortega Anwar M Osman Ashley Baxter, In memory of William Thomas Carlisle Attila Rebak Bambi Koch Benjamin Lemon Bret Logan Charles Castro Charles Hughes Charles Reifenberger, In honor of Paul Krugman Charles Trauger Chip Monroe Cliff Slater Corey Cotter D Schertz, In honor of Rand Paul, I liked the robe Darren Olofson David Crouch Desiree Dumas Donnie Martin Doug Jones Douglas Brownell Edward Wilson Gabe Royer Gabi Avni

   Gordon Clark Hayes Gahagan Henk Alles Ian Schmeisser James Cooper James Thomas Jason Hall Jason Lubyk Jeff Miller Jeffrey Abraham Joe Kerkes John Wares Joseph Gillotte Karen Slings Keith Sipe Kevin Burt Kevin Kyles Lawrence Greenberg Lisa Bordelon Ljubomir Dimitrovski Mac Trench Mark Briggs Matthew Bean Matthew Hale Matthew Walsh Mitch Costin

   Naoya Fuse Nathan Charpentier Paul Didier Paul McCormick Paul Slobodnik Paul Sullivan Peter Crabtree Peter de Vietien Philip Hansen Raymond Rondeau Richard Bird, In honor of all truth tellers—Everywhere Richard Browning Richard Huber Richard Westrup Richard Wilson Robert Strohecker Ronald West Stuart Egglestone Tab Schweitzer Ted McKnight Thomas Bertrand Anonymous Tim Kniveton Tobie Hall Walter Cruse William White

    

   Thursday, September 28

   Aaron Luther Agustin Argaluza Allen Ross Ana Martin Andrew Lachajczak Bart Vanderhaegen Betzaida Durkin Boris Kozintsev Bradford Wilson Brent Dresser Brent Harper Brett Roulston Brian DuBridge Brian McGlinchey Brian Murphy Bruce Sammut Charles Armour Charles Naja, In memory of MUM Chris DuFrayne, In memory of the U.S. Dollar Chris Hindmarch Cory Holden Dan Nibbelink David Barnes David Cruse David Pomeroy Dean Kocian Dean McHenry Derek Nelson Dorothea Burstyn, In memory of Alexander Burstyn Erik Guerra Frank Galusha Franklin Jensen Gabriel Fancher Gail Mitchell Gary Cesarz George Shchudlo Harry Elliott Harry Herchert Ira Epstein Jack Walsh James Greene Jan Niessen Jeancarlo Lopez Jeff Reasons Jerome R Allen Jerry LeCroy

   Joao Fernando Rossi Mazzoni Joe Loiacono Joel Gibson John Crissman John Downing John Frabotta John Gallagher John Gross John Larkin John Rountree John Sattel John Schempp John Soutsos Jonathan Huthmaker, In honor of Lauren Southern Jonathan Huthmaker Jonathan Merritt Joseph Camm Joseph George Joseph M. Stivaletta Joseph Spelman Joshua Vincent, In honor of Saifedean Ammous Joy Brower, Remembering Robert LeFevre and the Freedom School in Colorado Julio Baylac Kegan Williams Ken Christian Ken Howard Kenneth Robinson Kevin Christensen Kyle Thom Lina Thomas Linda McCrary Lisa Gansky Madalyn Pettenati Mag Martin Alois Brandner Malcolm Illingworth Marcin Wieloch Mark Allen Anonymous Mark Sanchez Anonymous Anonymous Michael Durnwald Michael Elwell Michael Houze Michael Jefferson Michael Solow

   Michael Woods Mike and Kelsey Whelen Mitchell Oelbaum MT Webb Nasly Ustariz Norman Hansen Patrick Butler Paul Frank Anonymous Paul McCormick Paul Sullivan Paul Taggart Pedro García Mateo, In Honor of Pedro Ga. Mateo Peter Navarro Peyton Gouzien R.H. Hartman, In memory of Murray N. Rothbard Raymond Eatmon, In honor of Stefan Molyneux Richard Armstrong Robert Bell Robert Czachorski Robert Davey Robert Graham Robert Lisi Robin Dea Ron Lynch Roshi Khilani Roy Steenhoek Rui Rosa RW Hobert Seth Benjamin Anonymous Steve Fenno Steve Mitchell Steve Reilly Steven Michael Terrence D Gallagher, In memory of Morgan James Gallagher Thomas Majewski Timothy Rydell Timothy Rydell Tony Dickerson Treena Luchetta Vance Hayes Victoria Sandberg Vincent O'Neill Vincent Vanderbent Wilhelm Laechelt Will Fuller

    

   Friday, September 29

   Aaron Brown Alan Forrester Alberto Gonzalez, In memory of Alexis A. Gonzalez Allen Dempster Andrew Cain Andrey Morozov Arthur Nation Barry Knighton Benjamin Lawrence Bernhard Stalzer Billy Armstrong Bitros George Bruce Burton Bryce Nygaard Bud Stamper, In honor of Prisoners Chris Boyce Christopher Stevens Claudia Asensio Claudia Staples Clinton Athey, In honor of Lew, Murray, and LVM. Colby Council Colin Turnnidge Dar Gandhi David Houston DENNIS M BLAIR Derek Schanil Dirck Storm Don Salonen Donald McKenna Doug White Eddie Allen, In memory of James Allen Edmund Buckley Erick Sepúlveda Erik Olsovsky Ernesto Ortiz Anonymous Frank Graham Gary Geddens Anonymous George Miller-Davis Glenn Risolo Graham Harrower Gregg Hunter Gregg Voos Gustavo Hincapie

   Hjalti Kjartansson Ian Rossi James Mosher, In honor of Joseph Schumpeter and Ludwig von Mises James Voris Jamie Sargeson, In honor of Murray Rothbard Jared Wall Jason Brown Jennifer Cole, In honor of Teddy Graf Jerry Marshall Johannes Van der Weide John Ciccotelli John Good John Jaeger John Sweeney Jonathan Doozan Jonathan Lawler Joseph Bratcher Joseph Feifer Kathie Dougherty Anonymous Lance Pietropola Landen Terrell Larry Goodman Laurence Rebich Les Dunaway Leslie Maltby Luke Carriere, In honor of Satoshi Nakamoto Mark Branson Mark Burk Mark Packard Matthew Bianco Matthew Lorence Matthew Lynn, In honor of Ludwig von Mises Matthew Thomas Max Jiang Max Pruger Michael Byrd Michael DeGan Michael Wilson Mike Alcaraz Mike Maddaloni Molly Brannon Nasser El Debs Nicholas West

   Olliver Robinson Patrick Brannan Paul Christensen Peter Gardow Peter Spung Ralf Hein Ralph Hughes Rares H Renee Duquette Ricardo Kilson Richard Klabechek Rick Neisser Riley Wipf, In honor of Jason James Wipf, my brother and guide. Robert Molinowski Robert Rose Rochelle Woychowski Roman Fresnedo Ron Wilharm Ronald Stauber Shelly Benford, In memory of Louis Gregorich Stan Ullerich Stephen Gorin Steven Digilio Terrell Yon Terry Readdick Thomas Diaz Thomas Fleres Thomas Jon Jensen Thomas Kirwan Timothy Hutson, In memory of Albert & Loyola Hutson Timothy Pitt Todd Connelly Todd Walls Tom Frey Tom Jenney, In honor of Ludwig von Mises Tsvetalin Radev Vladimir Popovic Wayne Crapella Wayne Williamson William Johnston

    

   All donors will be listed on our home page this week. Recurring donors of $5 or more, or one-time donors of $60 or more, will receive a free copy of Ten Great Economic Myths by Murray Rothbard.

3. Physician Burnout: Another Consequence of Medical Socialism

   Obamacare's forced electronic medical recordkeeping is denying patients the care they need.

    

   Original Article: Physician Burnout: Another Consequence of Medical Socialism

4. The Data Shutdown—Smokescreen?

   This episode examines the impending Government Shutdown, which will suspend new releases of the government's "vital" economic statistics. How will the "Data Dependent" Fed manage its policy behind the cloak of missing data? Mark suggests it's best to consider that the Fed is playing its typical confidence game.

   Be sure to follow Minor Issues at Mises.org/MinorIssues.

5. Will Dollarization Work in Argentina?

   In Argentina, the libertarian presidential candidate Javier Milei made headlines when he came in first in the primary on August 13. His economic program calls for a strong reduction in government spending and the role of government in general and would, if implemented, greatly improve the conditions of economic life in Argentina.

   There is, however, one weak point—namely, his proposed monetary reform. Faced with high inflation rates and a depreciating peso, Milei proposes to dollarize the Argentinian economy. The details are not clear, but the idea is to swap pesos for dollars at the market rate (effectively making pesos claims on dollars) before finally abolishing the Argentinian peso.

   All contracts, assets, and demand deposits would from then on be denominated in dollars, converted from pesos at whatever the rate was when the reform took effect. Argentinian economist Emilio Ocampo and the noted Austrian school economist Nicolás Cachanosky have authored one possible plan for dollarization. Milei has also suggested that other currencies could circulate freely in Argentina, implying that neither the peso nor the dollar would be the legal tender.

   The Problems of Dollarization

   To be clear, given Argentina’s situation, dollarization is very likely to be an improvement. Argentina suffers from high inflation, but this inflation is not from an act of God. Milei himself clearly understands that the culprit is the Argentinian central bank. Destroy the central bank, and the problem of inflation is over. As Milei says, dollarization is simply a means to an end. Rather than having the high rates of inflation produced by the central bank of Argentina, the country would import the lower rates produced by the United States Federal Reserve.

   If the main goal is to prevent the Argentinian state from despoiling its citizens through control over money, then Milei’s plan works—albeit by giving this power to the issuers of US dollars instead. While fiscal discipline will be imposed in Buenos Aires, the plan extends the possibilities of seigniorage in the dollar system. The imported US inflation, which may not be as bad as Argentinian inflation, is still bad.

   In fact, since it is clear that the Argentinian problem is a central bank that monetizes government debt—that is, it prints new pesos to fund the government—then dollarization is really superfluous. Once the central bank is abolished, have we not already achieved the desired goal?

   A Simple Monetary Reform for Argentina (and Everywhere Else)

   The simplest reform possible—one that could be implemented immediately—is to simply destroy the central bank by eliminating its role in issuing new units of money in whatever form—physical, digital, or as new reserves. There would no longer be an increase in the supply of money, and this would immediately solve the inflation crisis, since the cause and essence of inflation is an increase in the supply of money.

   A second step in this simple reform would then be to abolish all legal tender laws and all provisions that would favor one currency over another. While the peso would then probably continue to circulate, its key offending characteristics—monopoly control over the issue as well as its forced use—would be gone. Dollarization adds nothing to this state of affairs.

   A possible objection is that a later government could simply reimpose legal tender laws if the peso still circulates, returning the country to a fiat regime. This is true, but the same applies in the case of dollarization. After all, Zimbabwe dollarized in 2009 and then dedollarized in 2019. A more ambitious reform is more likely needed to prevent the reintroduction of fiat money.

   An Ambitious Monetary Reform for Argentina (and Everywhere Else)

   Rather than looking only at the issue of paper or base money (i.e., money whose issue is directly controlled by the central bank), a more ambitious reform would aim at reforming the banking system as well. The central bank is not the only creator of money—banks also create money within the modern system of fractional reserve banking. These banks, too, earn seigniorage from the creation of money ex nihilo, and they too destabilize the economic system. Besides paper money in the narrow sense, fiduciary media—bank-issued money in excess of bank reserves—should also be eliminated.

   This ambitious reform is only slightly more complicated than the simple reform. The outstanding issue of fiduciary media is first frozen, along with the normal operations of the central bank. However, the banks are then supplied with paper money to back all outstanding fiduciary media. This will not increase the money supply but simply convert the fiduciary issue into fully backed money certificates. Once this has been done—the technicalities of printing the notes may take some time—the central bank will close its door.

   What to do with its remaining assets is a secondary question. One option would be to let its creditors seize control of the assets; another option would be to use them to back the peso with gold. As in the simple reform, the peso would lose legal tender status and any other privileges, turning the monetary system into one of competing currencies. However, it might be desirable to convert the peso into a commodity money to put more obstacles in the path of reintroducing fiat money.

   The final plank in reforming the banking system would be a return to traditional legal principles. It should be required that banking contracts clearly specify to whom the sum of money is available, (i.e., whether the sum in question is a loan or a deposit). This would eliminate the possibility of fiduciary media reemerging, since what enables fractional reserve banking is confusion over who has control of the money in banking contracts.

   The Goal of Monetary Reform

   Such simple reforms accord with the goal of a just and harmonious economic and monetary order: removing money from the control of government and ending fiat money in all its forms by eliminating the special privileges accorded to banks. While the technicalities may differ from country to country, there is nothing standing in the way of implementing these reforms except a lack of political will. Javier Milei’s proposed reform in Argentina goes a long way toward this goal, but dollarization is a step backward.