• The individual-level incentives of fiat money have led to higher time preferences and debt, while the company-level incentives have led to large corporations replacing families.
• At the nation-state level, central banking and fiat money give governments the ability to become authoritarian and steal wealth from their nations.
• Government power has expanded with the use of fiat money, leading to a welfare/warfare state, surveillance state, police state, militaristic tyrannies and Marxism.
Incentives at Individual Level
Fiat money has created individual-level incentives which have led to an increased preference for short-term gains instead of long term savings. This is due to the easy availability of debt and lack of suitable savings options. This lifestyle has been further perpetuated by large corporations replacing families in communal life.
Incentives at Company Level
Company-level incentives have also been affected by fiat money as it grants enormous power to governments who can run deficits on budgets without any fear of repercussions. This has given rise to a welfare/warfare state, surveillance state, police state, militaristic tyrannies and even Marxism as people feel more comfortable under authoritarian rule than under free market laws where there is an opportunity cost associated with spending beyond one’s means.
Central Banking & Fiat Money
The central control over currency is a powerful tool that gives those in power the advantage of stealing wealth from their nations without being noticed easily due to mechanisms set up by central banking practices associated with fiat money systems. A major benefit for governments here is that they can run budget deficits without having to worry about interest rates or other economic variables as was the case before sound money systems were replaced by fiat ones.
The Effects of Fiat Money
The effects of this obscured ability granted by fiat money are far reaching; Governments now hold much more power than ever before with destructive capabilities never seen before in history spanning 100 years since its introduction into economics. Unfortunately, this has resulted in an increased surveillance state with police states becoming more common place throughout our lives as well as militaristic tyrannies and corrupt regimes taking root around us fueled mainly by Marxist principles which have become attractive prospects under these systems than free market laws otherwise would be..
Conclusion
As individuals we must be aware of the serious implications that come along with using a system such as fiat money – it may seem like a simple solution but it comes at great cost if not used responsibly and cautiously. It is important for us all then to understand how our economic decisions affect those around us so that we can make smarter choices when it comes down to managing our finances both personally and nationally so that we do not fall victim to its pitfalls unintentionally or otherwise!