What Can the Law of Diminishing Marginal Utility Teach Us? - Thorsten Polleit - Mises Daily

What Can the Law of Diminishing Marginal Utility Teach Us? - Thorsten Polleit - Mises Daily: "A monetary policy of increasing the money supply is therefore never 'neutral': It necessarily lowers the exchange value of the money unit, and it necessarily benefits some people (namely the first receivers of the new money) at the expense of others (namely the late receivers of the new money)."

"If government intervenes in the time market — by, for instance, increasing the supply of bank circulation credit and fiat money — it necessarily causes a deviation of the market interest rate from the pure interest rate (namely pushing the market interest rate below the pure market interest rate), which subsequently must lead to malinvestment and boom-and-bust."

"Violations of individual property rights (for instance through government taxation, regulations, etc.)" "thus raise peoples' time preference, increasing consumption at the expense of savings and investment, thereby reducing (or even reverting) the pace of capital accumulation. An interventionist-socialist societal order will therefore necessarily lead to impoverishment relative to a free market societal order, in which there are no systematic violations of individuals' property rights."