I really dig the concept of freedom. Being able to manage my own finances, grow my own food, and make my own health decisions. But I’ve noticed that this freedom is coming with a price tag. For instance, keeping crypto safe takes way more work (and a lot more risk) compared to just stashing cash in a bank. Buying fresh produce from local farmers is definitely better for you, but it costs more than what you’d find at the grocery store. Choosing personal health options instead of going with public vaccination plans could potentially lead to huge expenses for society if there are outbreaks.
It seems like we’re all moving away from centralized entities like banks, governments, and health agencies because we don’t trust them anymore. But that mistrust comes with its own costs, which I like to call the "fragmentation tax." We lose the benefits of collective action, and everything just ends up costing more.
Maybe this is why inflation feels so persistent everywhere. You see it in tariffs in the US, electricity prices in Europe, food costs in Asia, and fuel in Africa.
Are we okay with paying more for this kind of freedom? Or should we be looking for a way to rebuild trust so we don’t get hit with rising living costs year after year? What do you all think? Is inflation just about how much money is out there, or is it also tied to how we’re distancing ourselves as a society?
Is Freedom Getting More Costly?
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Neutral freedom can give rise to innovation, efficiency, and competitive prices. Greed or distortion of freedom can exploit regulatory weaknesses, market power, or consumer panic. Although inflation is often considered a "monetary phenomenon," it is also a "moral-economic phenomenon."
Freedom is not the direct cause of inflation. Freedom is an instrument. It is the abuse of freedom (due to greed) that causes prices to not reflect real market conditions. Economic freedom (the individual's right to transact, do business, set prices, and own property) actually promotes market efficiency. However, if this freedom is not constrained by regulations and social norms, the market can give rise to price gouging, when businesses arbitrarily raise prices during a crisis. Excessive speculation, capitalizing on individual freedom, can become an opportunity for hoarding. Unequal distribution, freedom without governance, widens the gap between the rich and the poor, which can then drive inflation through an imbalance in supply and demand.
Inflation can stem from two main factors: the quantity of money in circulation (macro, technical, and controllable by the central bank): human behavior (greed), monopolies, oligopolies, cartels, price markups, and consumer exploitation.
Where is that?
usually in the 3rd World you have the right to cultivate, fish and need to be aware that there a people wishing to harvest the fruits of your hard work.
Storing crypto on the blockchain should be at no cost.
The shift in attention from government regulated institutions to private ones that gives users the freedom to do what they want is as a result of the poor performance of the government institution and their failure to embrace a necessary change that the society has walked into. What makes bitcoin relevant is the freedom it proffers and same is the reason why interest have shifted from the centralised banking system to anything that's decentralised since it offers full control to users.
If the government health care system is working well, no one will opt for self medication or private health scheme. Government systems are looked at as things that are going obsolete because they have failed to make necessary changes that suits the present needs of users.
He is dreaming of utopian city like Platon. He forgot that we are already in a globalized world where everythings are interconnected in a way or another. Yes he has the right to cultivate, but from whom he can get meterial tools? Who will buy his production surplus? For food conservation, someone in third world must contact Refrigerator producers in developped countries world. Even North Coree can't totally isolate itself from the whole world as it still make trade exchanges with China and Russia including military cooperation.
I agree, real freedom in markets may result in efficiency, innovation, even cost reduction. However, as confidence in large organizations fades, individuals head back to smaller systems. Crypto over banks, local over global supply chains, self choice health over public health. That is survival. However, survival decisions typically are more expensive. Even when freedom itself is not the thing that causes inflation, the tearing up of trust makes our economies less efficient and the inefficiencies are reflected in a state of higher prices
I like your way of defining inflation as a "moral-economic phenomenon". Since that relates it to human action, not only money supply. Perhaps a larger question is, can we create systems in which freedom does not become exploitation and trust does not become fragmentation? Otherwise, perhaps it is not so much central banks that cause inflation but the way societies are structured
It definitely is. Fuel costs, airline fares, hotel prices
everything has been going up. The same hotel in the same European city used to be 50% cheaper 10 years ago. It is insane when you think about it. The inflation in Europe has been way more than 2-4% in the last 10 years I can tell that just by looking at the accommodation prices. The current political climate reflects it as well. I heard there is a big anti immigration protest going on in the UK. Far right is gaining momentum in Germany and the other big European countries.
It is even visible in crypto. It is almost impossible to find a service that doesnt ask KYC/AML anymore. Monero, the biggest privacy crypto currency is getting delisted from everywhere. We are definitely less free than we were 10 years ago.
Gaining freedom in all aspect of life is a very difficult task to embark on because it requires sacrifice and determination to archive. Talking about financial freedom, some of us where born with a silver spoons while other where not but but sacrifice their time to gain financial freedom. Currently now the world have gone to a stage that freedom is the only answer to all questions, most economy is crumbling due to their dependant on other people to survive which will indirectly cause more harm than good for them.
So to keep any economy moving their must be total freedom which I know won't be an easy task to embark on but it should be recognized as a must fixed issue that must be looked into
eric.wizardFull Member
Posts: 63 · Reputation: 487
#9May 25, 2017, 02:23 AM
Inflation isn't just about money printing it's also about thrust, because when people loose thrust in a system they start thinking about different things or having different motives towards that system.
The truth is just that freedom actually comes with a cost, both socially and financially.
The main challenge to me I would say if may not just be all about managing money supply, but actually restoring thrust, in the society, In government and in various institution.
Freedom is not expensive and there's nothing changing about having it or not, first if we could remember well, this same freedom we are talking about is not being given, but we have to take it, because it's our right that will always be denied of us except we realized on what we are going to be missing out without having this freedom with us, everyone of us should be more responsible for himself than relying on others, fight for your right and take what belongs to you without waiting to be given, create a survival means for yourself instead of waiting on others to plan for you, if you don't want to starve to death.
Freedom has always been an extraordinary event for the average person and is not an easy thing to obtain. It requires sacrifice or earning much higher than average, which many people are unable to achieve because there are only a limited amount of people who have what it takes to climb the ladder, along with the lucky timing to go with it. I don't think it has become any less attainable, because it was only ever open to a select few who stand out, but maybe that window just shrank for you - as it can with anyone. Money is always consolidating with the richest people and there will be a point where they absolutely dominate government but we still seem a couple steps away from that. You do have to think differently to the "herd" in order to break free of it though and the amount of people who can do that does appear to be dwindling.
What does any of that have to do with inflation? Inflation isn't about choosing the costlier stuff deliberately, but it's about things having higher value in general, like a loaf of bread costing $1 today and then costing $2 after a week, that's what inflation is, and not that you buy a bread from another brand that costs $2 at the same time when the other brand costs $1.
That being said, we are not drifting away from centralized systems, because we still need them. Do you think Bitcoin can be used alone by someone without using fiat currencies or the traditional financial systems? No, because you won't be able to do everything only with Bitcoin, and that's why we can't drift away from centralized systems just yet, and I don't think we ever will. Bitcoin is just an alternative that can be used alongside the current systems, and we should keep it that way.
Lastly, no, I don't think we are paying a higher price for the freedom that we've got with Bitcoin, because we don't need to do everything with Bitcoin. We can use centralized systems whenever we know they work better than Bitcoin.
Hmm, you sound right but you are not, you are sounding like if we all will buy everything in bulk then the expenses will be lower and the procedure will be fast, tell, for how long people are hating centralization, is this new, I don't think so, I think the Bitcoin has just given the way to let other people follow the decentralized way who already knew the reality about centralization.
When everything will be centralized, their will be a kind of monopoly, they will sell the disease and the cure, they will sell the field, crops, food, with tax, they do everything from bottom to top and they own it and they make money in the form of tax and they charge extra charges and if you refuse to pay they freeze your assets then what you do.
You are at their mercy.
real_laserFull Member
Posts: 73 · Reputation: 256
#14May 25, 2017, 06:44 PM
Who doesn't love the idea of freedom? Freedom is what everyone dreams of. In the current system, everything is getting more expensive, which hinders freedom. The unlimited money supply is one of the biggest factors. Monopolization of everything also creates problems, and this is why prices are rising every day, and greed and opportunism are skyrocketing due to high inflation. All of these impact and undermine people's freedom.
It's about the oligarchy and lesser competition that makes things more expensive. When the government has the control of everything and yet, they're not doing their jobs to control the market.
The oligarchs are the ones who are maintaining and control it in their favor. And so, what happens? fast food are cheaper than healthy food.
Cars are making people comfortable and so, it makes someone's status feel rich. So, whatever is fed to the people, that's what is being followed.
Right now, they're the ones feeding us what seems to be freedom to them. Working from home, can buy things without looking at the tag price.
It's all about what the society thinks of what actually freedom is. But we should be happy that we're not bind to it.
51gma_forkFull Member
Posts: 97 · Reputation: 658
#16May 27, 2017, 06:18 AM
Freedom must be expensive because you're trying to make something from your own, not from entity who produce something in bulk which they can reduce their cost and get discount. Since many people have collect/monopoly the natural resources, so the cost of freedom will become more and more expensive.
Unfortunately freedom isn't for Average Joe.
quantumninjaFull Member
Posts: 203 · Reputation: 563
#17May 27, 2017, 12:01 PM
Freedom has never been "cheap". It's not just about money. The flip side of freedom is personal responsibility for your life. That is, you will have to solve all the issues yourself: issues of generating finances (products, food and a place to live), issues of protecting these finances and other resources (in the case of crypto, storage security), etc.
The presence of mistrust does not mean that "we are moving away". Everything is just the opposite and our lives are increasingly drawn into a centralized environment. People can no longer take a step without an "element" of the centralized system participating in this process.
The reason for inflation is the "mad printer" and the way the world economy is structured. The current financial system is structured in such a way that inflation is a mandatory "bonus".
All together.
calmfalconSenior Member
Posts: 181 · Reputation: 966
#18May 27, 2017, 12:28 PM
^^Anyone who had an amazing childhood but then grew up to be their own person would know the difference. I had a great childhood, my father was a manager, who earned a lot, in fact it took me 6 years to pass his last salary even with inflation, so he was making a good amount of money, it was not even remotely close.
But when you think about it today, I have to work myself and do all of those things myself.
I always said "paying the bills" is the best example for this, sure the bills are not that much, I mean realistically how much a water bill or internet bill or electricity bill could be?
Those are all cheap stuff to be fair compared to all. But, the moment YOU start to pay the bill and not your parent, you realize now you are in charge.
People will only ever keep the rights and freedoms they are willing to pick up a weapon and die for. That's an axiom proven by history and even by current events.
I'm not sure anyone is willing to die for cryptocurrency. If the US Congress decides to ban it tomorrow, Bitcoin and altcoins will just become collectible coins for digital numismatists.
Also, you're writing completely contradictory things in your post. You talk about not trusting the government and state institutions, but all of themright up to the presidentare your personal choice. So, does this mean you voted for someone you don't trust?
viper_blockSenior Member
Posts: 205 · Reputation: 1216
#20May 27, 2017, 05:22 PM
It seems we are alright to pay a higher price for freedom. But if we think deeply, we are slowly losing our freedom since the government wants to take control of our lives. From the smallest things, such as how much our savings are in our banks, they will impose taxes on us.
Not to mention crypto, which the government wants to know more about by regulating the exchanges, especially local exchanges, to report to them. But we can not live without the government so we are willing to pay for our freedom. If you don't commit anything bad, your government will not chase you and you can enjoy what you have.
But crypto allows us to control our assets secretly if we don't send it to the exchanges. But that will not be easy, as we need to send and sell crypto to make cash. Tariffs are everywhere, so we need to follow that.
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