I'm enjoying Ludwig von Mises' short, FREE book, "Planning For Freedom". I just came across this nugget: "There is only one way that leads to an improvement of the standard of living for the wage-earning masses, viz., the increase in the amount of capital invested. All other methods, however popular they may be, are not only futile, but are actually detrimental to the well-being of those they allegedly want to benefit." He states later in that chapter, "All measures which - like our income and corporation tax system - aim at preventing further capital accumulation or even at capital decumulation are therefore virtually anti-labor and anti-social."
For any good economist, a discussion of wages and capital is incomplete without addressing the issue of sound money and the true definition of inflation: devaluing the currency or printing more money. One result, Mises explains: "Inflation can cure unemployment only by curtailing the wage earner's real wages." Think about that the next time Bernanke announces another "quantitative easing".
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