Credit – Frederic Bastiat – Mises Institute

Via the Mises Institute, a little Bastiat demonstrating how little is new under the sun:

In all times, but more especially of late years, attempts have been made to extend wealth by the extension of credit.

I believe it is no exaggeration to say, that since the revolution of February, the Parisian presses have issued more than 10,000 pamphlets, crying up this solution of the social problem.

The only basis, alas, of this solution, is an optical delusion — if, indeed, an optical delusion can be called a basis at all.

The first thing done is to confuse cash with produce, then paper money with cash; and from these two confusions it is pretended that a reality can be drawn.

Read on…

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