Inflation, Randians say, is really a hidden tax. The king (government) pretends falling demand (surplus value) is caused by big business who raise rents without risk because they are not regulated enough. Since more and more regulation robs us of our civil liberty to freely enterprise and add supply, government causes inflation (it raises rents like the king did) and destroys demand, which results in debt (extension of credit) both public and private to resist deflation.
According to Objectivists, if we simply get rid of government, we reduce all the risks. Inflation and deflation, risks that ironically occur at the same time these days, will naturally resolve in the aggregate by imperative. If “We” all get that patriotic, revolutionary spirit (and we’re all invited to the Tea Party) the king will finally be finished and our problems will be solved once and for all. The struggle for true identity (history) will objectively end.
Demand-side economics (the “liberal” identity), Objectivists say, is what causes our problems. What is necessary to demand the supply added and avoid deflationary risk “effectively causes” inflation and unemployment.
Operating with Objectivist philosophy, if we have trouble sorting out what is cause and effect, which is necessary to really solve problems, conflation of the values–like saying we have a free market, which Objectivist bankers “make” more efficient by “rationalizing” it–is why.
Being effectively causal, understand, conflates the values. Just like saying we have a free market, but it must be made more rational to be efficient, effective causality is perfect nonsense. It is as Jean Paul Galbert describes it, the philosophy of inexistence.
The conflation requires a philosophy of risk to maintain it. Although rank-and-file Republicans may not consider themselves to be Randians, their leadership does, and this identity is not limited to the right wing.
Keep in mind that President Clinton, buying-in to Randian philosophy with broad Democratic support, signed into law the repeal of Glass-Steagill and we are still agonizing the effects. We struggle with inflationary-deflationary risk that will blow up in our face if we don’t stop trying to maintain it with an “objective reality” that does not exist.
griffithlighton 