Topic: Economics, Matches 52 quotes.

Bank Failures

Let me give you another illustration [of selfishness], a delicate one I admit. There have been many bank failures in this intermountain country during the past year. The closing was due in most cases, probably, to a “run on the bank.” Now of course when we think a little about the matter it is clear that no bank can immediately give back to depositors all their money. Some of it is always loaned out on time accounts, and borrowers are not able to pay on demand. Hence if all the depositors make a run on a bank they will inevitably force it to close. Now what causes a run? Selfishness, of course. If the bank is in distress, let the other fellow lose. I want my money and so rush after it, hoping to heat the other fellow to the bank. If in this matter all depositors were to live the Golden Rule there would be few, if any, losers and few, if any, bank closings. This is a self-evident fact.

Source: Elder Joseph F. Merrill
General Conference, April 1932

Topics: Economics; Selfishness

Since that date [1971], or rather since 1933, the world has had a fluctuating fiat standard, that is, exchange rates of currencies have fluctuated in accordance with supply and demand on the market. There are grave problems with fluctuating exchange rates, largely because of the abandonment of one world money (i.e. gold) and the shift to international barter. Because there is no world money, every nation is free to inflate its own currency at will—and hence to suffer a decline in its exchange rates. And because there is no longer a world money, unpredictably fluctuating uncertain exchange rates create a double uncertainty on top of the usual price system—creating, in effect, multi-price systems in the world.

Source: Murray N. Rothbard
Making Economic Sense

Topics: Economics

If an exchange between two parties is voluntary, it will not take place unless both believe they will benefit from it. Most economic fallacies derive from the neglect of this simple insight, from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another.

Source: Milton Friedman

Topics: Economics

All of us as Americans have a patriotic responsibility not to contribute to the inflation danger by needlessly building still higher the mountain of total debt. All of us as individuals—and above all, as members of families—have an obligation in conscience not to mismanage our resources.

Yes, there is a tendency for all of us to want to “keep up with the Joneses,” but even though our income is low we have plenty of company. This should make it easier to live within our income and resist borrowing from the future except in cases of necessity—never for luxuries.

Source: Elder Ezra Taft Benson
General Conference, April 1957

Topics: Economics; Responsibility

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