Easy Chair No. 163, February 11, 1988 - Inflation in the U.S.

R.J. Rushdoony and Otto Scott discuss persistent inflation in the U.S., explaining it as an increase in the money supply that benefits debtors at the expense of creditors. Citing Freeman Tilden, they note inflation succeeds when fueled by larceny in the hearts of participants. They trace inflation from Roosevelt’s era to the late 20th century, highlighting how excessive credit, foreign loans, and artificial currency distort the economy and erode trust in money.

They compare historical examples, such as Spain’s gold and John Law’s paper money in France, to show how unearned wealth and currency manipulation weaken societies. Modern banking, subsidies, and international loans perpetuate debt and economic instability.

Despite these challenges, Rushdoony and Scott emphasize the opportunity for Americans to restore stability through work, sound currency, and financial responsibility, noting that Christians must particularly guard against debt, which is a leading cause of personal and societal problems.