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  • Foto del escritorKaren Ness

The Politico-Economic Pathology


money – means of exchange of goods and services whose production and value are not subject to politics, but to supply and demand

currency – a means of exchange created by and subject to politics; material that has little or no intrinsic value; excessively easy to increase in quantity and supply

devaluation – the loss of value of money or currency caused by an increase in its supply

inflation – the rise in prices caused by the increase in supply of money or currency; the symptoms of the devaluation of a money or currency; the rise in prices caused by a surge in the demand for goods and services

Cantillion effect – the persons in a more direct reciprocal relationship to the producers of money or currency have an advantage over those further away

price ceiling – price of a product that is fixed by government

exploitation – the systematic violation of property



Once populism has taken root, which justifies the use of public force to redistribute power and wealth and to persecute the “enemies,” it is only a matter of time before politicians use public force to control money and indebt and impoverish Society, present and future.

They create currency that they control or take out loans to pay benefits, but first, they keep their hefty share. Then, they pay other employees of the State and contractors.

The injection of money or currency increases the demand for the same quantity of products, whose prices increase. Politicians and their supporters always buy before inflation and devaluation occur, which increases their material wealth.

When producers want to produce more goods during a period of inflation, they need to pay more and the prices of their products go up. Politicians blame the producers and sellers for higher prices. Responding to the complaints of voters, they legislate price ceilings.

The price ceilings leave no margin to feed the small producers and replace their supplies. Medium, small and micro-producers go bankrupt. As their businesses fail, the things they produced become scarcer and more expensive.

Those who saved for the future see their savings dwindle in value. Any sacrifices they may have made are now worthless.

Society fragments as competition for power intensifies. Corruption, poverty, and inequality reach critical levels. Public force is increasingly diverted to quelling protests and eliminating political rivals. The State has reached rock bottom.

The unlawful competition for public power between factions and politicians has corrupted the State, Society, and the economy to the point where the damage done becomes a selling point for the audacious politician who sees in it an opportunity to concentrate public power in his hands.


Photograph: Reg Natarajan, Vancouver, Bogotá - Venezuelan Refugees in Bogotá Selling Crafts Made of Worthless Venezuelan Cash, CC BY 2.0,

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