[T]he affinity between free market economic thinking and hard money is an interesting and important phenomenon….I do think there’s a deep logic to it. Once you concede the fact that prosperity over both the long- and short-term depends in part on competent demand management from a powerful bureaucratic organization, then it’s difficult to resist the moral logic of redistribution regardless of the empirical merits of any particular government program. But there’s a deep yearning to give the case for free markets a profound moral reading rather than a pragmatic one, and that reading is hard to maintain in the face of a modern monetary system. Hence the hankering for gold.
Right, and by the same token, there’s a deep logic to the progressive support for graduated taxation and hatred of the gold standard. Someone who has no problem recommending that the government take people’s hard-earned money to spend on pet projects clearly has no respect for private property. It’s not at all surprising that such a person is fine with the US government reneging on its contractual obligations to redeem dollars for gold, and even lock people for up to 10 years in prison for the crime of holding on to a yellow piece of metal that they had acquired in legitimate commerce.
Oh, note that the URL for Yglesias’ post is “monetary derp at Cato.” Remember, “derp” is the extremely dorky term that our hipster Keynesian bloggers have adopted to be shorthand for “refusing to acknowledge that your views are totally falsified by the evidence.” On that note, click on this Yglesias post from mid-July. I don’t want to spoil the surprise; just check it out to see why Yglesias can justifiably mock others for their horrible derpitude.