How The Stock Market And The Economy Really Work

I found an interesting article on the mises.org website today. It is a really long read, but an interesting insight into libertarian economic theory.

Mainly Kel Kelly talks about how money supply really affects the stock market and the economy. With an increase in money supply comes inflation. And he argues that this isn’t normal consumer products inflation because the money never really makes it to the consumer.

Instead the new money added by the government tends to flow into the financial markets.

This increases prices for things such as houses and other asset classes, but it doesn’t seem to affect normal consumer items such as food or gas. I would argue that it would if people could continually take out home equity loans. We should almost be thankful that home prices stopped their insane climb.

How The Stock Market and the Economy Really Work

If you want to educate yourself more on this topic take the time to read the full article. It is worth it!

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