by Sennholz
[The Economic and Social Consequences of Inflation]: Sennholz argues that inflation causes radical upheavals in the distribution of wealth, primarily by transferring savings from creditors to debtors. He contends that modern inflation hurts the masses who hold insurance and savings, strengthens the demand for government interventionism, and distorts business profits through taxation on imaginary gains. The section concludes by asserting that government alone is responsible for inflation through its control over the money supply. [The Federal Reserve System and Monetary Management]: This segment traces the evolution of central banking from the Bank of England to the Federal Reserve System, arguing that the Fed has become an 'omnipotent arm of the government' rather than a private institution. Sennholz critiques the interpretation of the U.S. Constitution regarding the power to coin money, asserting that the Founding Fathers intended a fixed standard rather than the modern 'monetary management' used to finance government deficits. [Automation, Labor Unions, and Economic Progress]: Sennholz refutes the belief that automation causes chronic unemployment, defining it instead as production with more efficient tools that ultimately increases output and labor productivity. He argues that labor unions create unemployment through wage restraints and then blame technology, whereas real economic progress depends on capital accumulation from savings and profits. The essay emphasizes the necessity of continuous individual adjustment to changing technology and consumer demand. [The Fallacies of Protectionism and Free Trade]: This section defends free trade by arguing that unit costs, not hourly wages, determine international competitiveness, noting that capital-intensive American industries thrive despite high wages. Sennholz critiques protectionism as a cause of industrial maladjustment and lower productivity, citing the Smoot-Hawley Tariff as a failed employment measure. He also addresses the political complexities of trading with Communist regimes while advocating for domestic tax and labor reform over trade restrictions. [The Great Society and Personal Financial Defense]: Sennholz predicts the decline of the U.S. dollar due to 'Great Society' spending and overextended gold reserves. He advises conservatives to protect their wealth by avoiding money-claims (like bonds or savings) and instead investing in 'real goods' such as land, business partnerships, or unessential industries that are less likely to be hit by government price controls. He expresses skepticism about foreign gold holdings as a defense, fearing government prohibition or confiscation. [Monopoly Theory and the Anti-Trust Division]: Sennholz critiques the Marxian notion that capitalism inevitably leads to monopoly, arguing instead that the unhampered market prevents monopolistic pricing through potential competition and the existence of substitutes. He asserts that government intervention and anti-trust bureaucracy actually serve as tools for socialist propaganda by distorting the public's view of the enterprise economy. The segment emphasizes that consumers, through their choices, remain the ultimate regulators of the market. [Interest, Capital Markets, and Government Intervention]: This essay explains the origin of interest as the difference in valuation between present and future goods, defending the capital market as an essential pillar of a free economy. Sennholz critiques the history of interest prohibition and modern government intervention in banking, specifically how the Federal Reserve channels funds toward government priorities. He concludes that the banking industry has been uniquely targeted by statism and needs to be freed from government control. [The Population Explosion and Economic Freedom]: Sennholz refutes Malthusian fears of overpopulation, arguing that in capitalistic societies, economic expansion outpaces population growth and birth rates naturally decline due to increased personal responsibility. He contends that the 'population explosion' in Asia and Africa is actually a crisis of collectivism and socialism, where Western medicine has lowered death rates but government controls prevent the economic growth necessary to sustain the people. [Economic Freedom as an Inseparable Ingredient of Liberty]: Sennholz argues that economic freedom is an inseparable part of general liberty and that a collectivistic economic order inevitably leads to the loss of political and intellectual freedom. He critiques the 'pseudo-liberal' view that separates economics from other rights, and refutes the argument that market scarcity is a form of coercion comparable to government force. The essay positions the defense of economic freedom as the primary battleground against modern tyranny. [The Fallacy of GNP and the Reality of the Boom]: Sennholz critiques the use of Gross National Product (GNP) statistics, arguing that they misleadingly include predatory government spending as growth. He asserts that the 'Kennedy-Johnson boom' is an artificial creation of monetary inflation and credit expansion that will inevitably lead to depression. The segment also highlights the hidden costs of government bureaucracy and the depressive effects of labor union privileges on the economy. [The 'Little Fellow' as the Victim of Socialism]: Sennholz argues that the average worker, or 'little fellow,' is the primary victim of government intervention and socialism, rather than the wealthy. He explains how central planning turns labor into a managed 'industrial army,' how inflation destroys the savings of the thrifty, and how socialized medicine leads to a deterioration of service for the average patient. The essay concludes that free enterprise is the true benefactor of the common man. [The Economic Productivity of the Housewife]: Sennholz highlights the significant but uncounted economic contribution of housewives, arguing that their productivity can be measured by comparing home services to market prices. He notes that high standards of living in modest-income families often result from high homemaker productivity, which has been enhanced by industrial capital investment in kitchen tools. He critiques GNP statistics for ignoring this vital sector of production. [The New Price Control and Monetary Inflation]: Sennholz critiques the government's attempt to impose price controls on industry while simultaneously inflating the money supply. He explains that prices rise because of government-created purchasing power, and that fixing prices below market equilibrium will inevitably lead to shortages, quality deterioration, and eventually a system of rationing and all-round socialism. The segment includes a short 'Cracker Barrel' quote by Jack Moffitt. [Labor Relations Law and Union Privileges]: This segment reviews the history of U.S. labor legislation, specifically the Norris-LaGuardia and Wagner Acts, which Sennholz argues granted unions legal immunities and privileges akin to medieval princes. He critiques the shift of labor disputes from courts of law to administrative boards (NLRB) and argues that the resulting interventionism is eroding the enterprise system and leading toward a socialistic control of labor. [The Decline of Private Property and the Rise of Tyranny]: Sennholz traces the gradual erosion of private property rights through social legislation and progressive taxation, which he views as a shift from protecting property to redistributing it. He argues that the U.S. Constitution and Supreme Court have been transformed into tools for social policy, and that the destruction of economic property rights inevitably leads to political dictatorship and the loss of all individual freedom. [Economics, Soviet Style: The Five-Year Plan]: Sennholz analyzes the Soviet Union's 1966-1970 five-year plan, dismissing its optimistic statistics as propaganda. He argues that socialist investment often results in malinvestment because the lack of market prices prevents economic calculation. The segment concludes that Communist promises of future affluence are merely a tool to distract from present misery and slavery. [The Nature of Fascism and Modern Parallels]: Sennholz defines Fascism by quoting its founder, Benito Mussolini, highlighting its roots in socialism and its focus on state-managed social welfare, public works, and education. He suggests that many modern 'Liberal' policies—such as minimum wages, social security, and government-funded recreation—share ideological similarities with the Fascist program of state dominance over all aspects of life. [The Deterioration of Public Education]: Sennholz critiques the American public school system as a socialized industry suffering from quality deterioration due to forced integration, the removal of religion, and growing political bureaucratization. He notes the rise of private and parochial schools as a response to these issues and argues that federal aid is a desperate attempt to bolster a failing system that conditions children to accept government omnipotence. [Inflation, Wage-Price Guideposts, and the Great Society]: Sennholz accuses the Great Society administration of causing inflation through massive monetary expansion and then blaming the victims. He critiques 'wage and price guideposts' as futile attempts to treat symptoms rather than causes, predicting that the government will eventually resort to higher taxes and formal price controls to hide the disastrous effects of its own policies. [The Economic Warfare of Minimum Wage Legislation]: Sennholz argues that minimum wage laws are a form of 'economic warfare' that primarily hurts the poor, unskilled, and minorities by pricing them out of the labor market. He specifically highlights the high rate of Negro teenage unemployment as a consequence of these laws and suggests that the legislation is supported by Northern unions to stifle Southern competition and by socialists to breed the discontent necessary for further government control. [Communist Dogma in American Monetary Thought]: Sennholz warns that many Americans, including some self-described conservatives, have unwittingly adopted Communist doctrines regarding money and banking. He quotes Soviet texts and Lenin to show that the attacks on 'finance capital,' the 'financial oligarchy,' and the demand for a centralized government bank are core tenets of Marxism-Leninism designed to facilitate a socialist takeover. [The Defense of Big Business]: Sennholz defends big business against charges of monopoly and exploitation, arguing that large corporations grow by serving consumers efficiently. He refutes the idea that automation destroys jobs, noting that big business employment has grown faster than the general job market. He contrasts the productive growth of corporations with the 'ominous' growth of big government, which he claims shackles productive efforts and leads to tyranny. [The 1968 Federal Budget and Trust Fund Growth]: Sennholz analyzes the 1968 federal budget, highlighting that the 'Administrative Budget' grossly understates total federal spending by ignoring trust funds and public enterprises. He notes the dramatic 400 percent increase in trust fund expenditures since 1955 and argues that this massive expansion of the welfare state is financed through an 'invisible tax' of inflation, which impoverishes savers and retirees. [The National Debt and Inflationary Repudiation]: Sennholz refutes the idea that the national debt is harmless because 'we owe it to ourselves,' pointing out that it represents a real burden on taxpayers and a threat to gold reserves. He argues that the government is 'paying off' the debt through inflation, which is a form of silent repudiation that expropriates wealth from creditors, savers, and pensioners. He concludes that inflation is 'theft on a gigantic scale' and must be stopped. [The Steel Industry and the Fallacy of Tariffs]: Sennholz critiques the American steel industry's demand for higher tariffs, arguing that protectionism hurts consumers and export industries while failing to create full employment. He explains that American competitiveness should be based on low unit costs and capital efficiency rather than government-enforced scarcity. He cites the Smoot-Hawley Act as historical proof that tariffs aggravate rather than solve economic depressions. [The Truth-In-Lending Bill and Credit Regulation]: Sennholz critiques the 'Truth-in-Lending' Bill as a regulatory measure that will increase the cost and risk of extending small loans, particularly hurting the poor. He argues that legislating 'truth' is a sign of a decadent society and that the act will create a massive new bureaucracy without stopping actual usury. The segment ends with a 'Cracker Barrel' joke about birth control. [Race Riots and the Failure of the Welfare State]: Sennholz argues that the race riots of the 1960s are a direct result of 'Liberal' welfare policies and labor legislation that have made unskilled Negroes unemployable and destroyed family integrity. He contends that the riots further impoverish these areas by driving out capital and insurance, and that the only solution is to restore order and repeal the welfare state programs that breed dependency and revolutionary agitation. [The Economic State of the Union and Dollar Devaluation]: Sennholz critiques the 1968 State of the Union Message, arguing that the 'Great Society' is moving toward comprehensive socialized medicine and socialist cities. He predicts that continued budget deficits and inflation will lead to the loss of all U.S. gold reserves and eventual dollar devaluation. He dismisses foreign exchange controls as futile attempts to stop the consequences of inflationary government spending. [The Redistribution Process in the Federal Budget]: This segment analyzes the federal budget as a vast mechanism for income redistribution, which Sennholz defines as 'legalized robbery by majority vote.' He argues that this process discourages productive effort, consumes accumulated capital through death duties and high taxes, and creates unintended negative consequences for both the producers who are taxed and the beneficiaries who become dependent on government aid. [Guaranteed Annual Income and the Negative Income Tax]: Sennholz critiques the 'guaranteed annual income' and 'negative income tax' as immoral schemes that destroy the incentive to work. He argues that these plans will not replace the existing welfare system but will be added to it, further burdening taxpayers. He suggests that poverty is best solved by repealing minimum wage laws and returning to private charity, and controversially proposes that those on public relief should lose their voting rights. The text concludes with two 'Cracker Barrel' quotes.
Sennholz argues that inflation causes radical upheavals in the distribution of wealth, primarily by transferring savings from creditors to debtors. He contends that modern inflation hurts the masses who hold insurance and savings, strengthens the demand for government interventionism, and distorts business profits through taxation on imaginary gains. The section concludes by asserting that government alone is responsible for inflation through its control over the money supply.
Read full textThis segment traces the evolution of central banking from the Bank of England to the Federal Reserve System, arguing that the Fed has become an 'omnipotent arm of the government' rather than a private institution. Sennholz critiques the interpretation of the U.S. Constitution regarding the power to coin money, asserting that the Founding Fathers intended a fixed standard rather than the modern 'monetary management' used to finance government deficits.
Read full textSennholz refutes the belief that automation causes chronic unemployment, defining it instead as production with more efficient tools that ultimately increases output and labor productivity. He argues that labor unions create unemployment through wage restraints and then blame technology, whereas real economic progress depends on capital accumulation from savings and profits. The essay emphasizes the necessity of continuous individual adjustment to changing technology and consumer demand.
Read full textThis section defends free trade by arguing that unit costs, not hourly wages, determine international competitiveness, noting that capital-intensive American industries thrive despite high wages. Sennholz critiques protectionism as a cause of industrial maladjustment and lower productivity, citing the Smoot-Hawley Tariff as a failed employment measure. He also addresses the political complexities of trading with Communist regimes while advocating for domestic tax and labor reform over trade restrictions.
Read full textSennholz predicts the decline of the U.S. dollar due to 'Great Society' spending and overextended gold reserves. He advises conservatives to protect their wealth by avoiding money-claims (like bonds or savings) and instead investing in 'real goods' such as land, business partnerships, or unessential industries that are less likely to be hit by government price controls. He expresses skepticism about foreign gold holdings as a defense, fearing government prohibition or confiscation.
Read full textSennholz critiques the Marxian notion that capitalism inevitably leads to monopoly, arguing instead that the unhampered market prevents monopolistic pricing through potential competition and the existence of substitutes. He asserts that government intervention and anti-trust bureaucracy actually serve as tools for socialist propaganda by distorting the public's view of the enterprise economy. The segment emphasizes that consumers, through their choices, remain the ultimate regulators of the market.
Read full textThis essay explains the origin of interest as the difference in valuation between present and future goods, defending the capital market as an essential pillar of a free economy. Sennholz critiques the history of interest prohibition and modern government intervention in banking, specifically how the Federal Reserve channels funds toward government priorities. He concludes that the banking industry has been uniquely targeted by statism and needs to be freed from government control.
Read full textSennholz refutes Malthusian fears of overpopulation, arguing that in capitalistic societies, economic expansion outpaces population growth and birth rates naturally decline due to increased personal responsibility. He contends that the 'population explosion' in Asia and Africa is actually a crisis of collectivism and socialism, where Western medicine has lowered death rates but government controls prevent the economic growth necessary to sustain the people.
Read full textSennholz argues that economic freedom is an inseparable part of general liberty and that a collectivistic economic order inevitably leads to the loss of political and intellectual freedom. He critiques the 'pseudo-liberal' view that separates economics from other rights, and refutes the argument that market scarcity is a form of coercion comparable to government force. The essay positions the defense of economic freedom as the primary battleground against modern tyranny.
Read full textSennholz critiques the use of Gross National Product (GNP) statistics, arguing that they misleadingly include predatory government spending as growth. He asserts that the 'Kennedy-Johnson boom' is an artificial creation of monetary inflation and credit expansion that will inevitably lead to depression. The segment also highlights the hidden costs of government bureaucracy and the depressive effects of labor union privileges on the economy.
Read full textSennholz argues that the average worker, or 'little fellow,' is the primary victim of government intervention and socialism, rather than the wealthy. He explains how central planning turns labor into a managed 'industrial army,' how inflation destroys the savings of the thrifty, and how socialized medicine leads to a deterioration of service for the average patient. The essay concludes that free enterprise is the true benefactor of the common man.
Read full textSennholz highlights the significant but uncounted economic contribution of housewives, arguing that their productivity can be measured by comparing home services to market prices. He notes that high standards of living in modest-income families often result from high homemaker productivity, which has been enhanced by industrial capital investment in kitchen tools. He critiques GNP statistics for ignoring this vital sector of production.
Read full textSennholz critiques the government's attempt to impose price controls on industry while simultaneously inflating the money supply. He explains that prices rise because of government-created purchasing power, and that fixing prices below market equilibrium will inevitably lead to shortages, quality deterioration, and eventually a system of rationing and all-round socialism. The segment includes a short 'Cracker Barrel' quote by Jack Moffitt.
Read full textThis segment reviews the history of U.S. labor legislation, specifically the Norris-LaGuardia and Wagner Acts, which Sennholz argues granted unions legal immunities and privileges akin to medieval princes. He critiques the shift of labor disputes from courts of law to administrative boards (NLRB) and argues that the resulting interventionism is eroding the enterprise system and leading toward a socialistic control of labor.
Read full textSennholz traces the gradual erosion of private property rights through social legislation and progressive taxation, which he views as a shift from protecting property to redistributing it. He argues that the U.S. Constitution and Supreme Court have been transformed into tools for social policy, and that the destruction of economic property rights inevitably leads to political dictatorship and the loss of all individual freedom.
Read full textSennholz analyzes the Soviet Union's 1966-1970 five-year plan, dismissing its optimistic statistics as propaganda. He argues that socialist investment often results in malinvestment because the lack of market prices prevents economic calculation. The segment concludes that Communist promises of future affluence are merely a tool to distract from present misery and slavery.
Read full textSennholz defines Fascism by quoting its founder, Benito Mussolini, highlighting its roots in socialism and its focus on state-managed social welfare, public works, and education. He suggests that many modern 'Liberal' policies—such as minimum wages, social security, and government-funded recreation—share ideological similarities with the Fascist program of state dominance over all aspects of life.
Read full textSennholz critiques the American public school system as a socialized industry suffering from quality deterioration due to forced integration, the removal of religion, and growing political bureaucratization. He notes the rise of private and parochial schools as a response to these issues and argues that federal aid is a desperate attempt to bolster a failing system that conditions children to accept government omnipotence.
Read full textSennholz accuses the Great Society administration of causing inflation through massive monetary expansion and then blaming the victims. He critiques 'wage and price guideposts' as futile attempts to treat symptoms rather than causes, predicting that the government will eventually resort to higher taxes and formal price controls to hide the disastrous effects of its own policies.
Read full textSennholz argues that minimum wage laws are a form of 'economic warfare' that primarily hurts the poor, unskilled, and minorities by pricing them out of the labor market. He specifically highlights the high rate of Negro teenage unemployment as a consequence of these laws and suggests that the legislation is supported by Northern unions to stifle Southern competition and by socialists to breed the discontent necessary for further government control.
Read full textSennholz warns that many Americans, including some self-described conservatives, have unwittingly adopted Communist doctrines regarding money and banking. He quotes Soviet texts and Lenin to show that the attacks on 'finance capital,' the 'financial oligarchy,' and the demand for a centralized government bank are core tenets of Marxism-Leninism designed to facilitate a socialist takeover.
Read full textSennholz defends big business against charges of monopoly and exploitation, arguing that large corporations grow by serving consumers efficiently. He refutes the idea that automation destroys jobs, noting that big business employment has grown faster than the general job market. He contrasts the productive growth of corporations with the 'ominous' growth of big government, which he claims shackles productive efforts and leads to tyranny.
Read full textSennholz analyzes the 1968 federal budget, highlighting that the 'Administrative Budget' grossly understates total federal spending by ignoring trust funds and public enterprises. He notes the dramatic 400 percent increase in trust fund expenditures since 1955 and argues that this massive expansion of the welfare state is financed through an 'invisible tax' of inflation, which impoverishes savers and retirees.
Read full textSennholz refutes the idea that the national debt is harmless because 'we owe it to ourselves,' pointing out that it represents a real burden on taxpayers and a threat to gold reserves. He argues that the government is 'paying off' the debt through inflation, which is a form of silent repudiation that expropriates wealth from creditors, savers, and pensioners. He concludes that inflation is 'theft on a gigantic scale' and must be stopped.
Read full textSennholz critiques the American steel industry's demand for higher tariffs, arguing that protectionism hurts consumers and export industries while failing to create full employment. He explains that American competitiveness should be based on low unit costs and capital efficiency rather than government-enforced scarcity. He cites the Smoot-Hawley Act as historical proof that tariffs aggravate rather than solve economic depressions.
Read full textSennholz critiques the 'Truth-in-Lending' Bill as a regulatory measure that will increase the cost and risk of extending small loans, particularly hurting the poor. He argues that legislating 'truth' is a sign of a decadent society and that the act will create a massive new bureaucracy without stopping actual usury. The segment ends with a 'Cracker Barrel' joke about birth control.
Read full textSennholz argues that the race riots of the 1960s are a direct result of 'Liberal' welfare policies and labor legislation that have made unskilled Negroes unemployable and destroyed family integrity. He contends that the riots further impoverish these areas by driving out capital and insurance, and that the only solution is to restore order and repeal the welfare state programs that breed dependency and revolutionary agitation.
Read full textSennholz critiques the 1968 State of the Union Message, arguing that the 'Great Society' is moving toward comprehensive socialized medicine and socialist cities. He predicts that continued budget deficits and inflation will lead to the loss of all U.S. gold reserves and eventual dollar devaluation. He dismisses foreign exchange controls as futile attempts to stop the consequences of inflationary government spending.
Read full textThis segment analyzes the federal budget as a vast mechanism for income redistribution, which Sennholz defines as 'legalized robbery by majority vote.' He argues that this process discourages productive effort, consumes accumulated capital through death duties and high taxes, and creates unintended negative consequences for both the producers who are taxed and the beneficiaries who become dependent on government aid.
Read full textSennholz critiques the 'guaranteed annual income' and 'negative income tax' as immoral schemes that destroy the incentive to work. He argues that these plans will not replace the existing welfare system but will be added to it, further burdening taxpayers. He suggests that poverty is best solved by repealing minimum wage laws and returning to private charity, and controversially proposes that those on public relief should lose their voting rights. The text concludes with two 'Cracker Barrel' quotes.
Read full text