It is very important to recognize that governments that move in the direction of being the principal benefactor of a society’s wellbeing, health, comfort, security, safety, protection, prosperity, success and a lifetime of good fortune is a government that favors socialism. This is not always easy to see because all these things sound so wonderful, but it’s an illusion. This is one reason why as Austrians we must always be on the look out for the “unseen” consequences of providing such benefits to a society.
In the May 2017 issue of the LMR, I wrote the first part of this series. I began to tackle a common objection that Carlos and I get when we talk to crowds familiar with Austrian economics. Specifically, people wondered how Carlos and I could be in favor of the Infinite Banking Concept (IBC), after we had systematically explained that the Federal Reserve’s actions since 2008 had set the U.S. economy up for another crash, and also threatened the U.S. dollar. In such an environment, why in the world would somebody want to load up on a dollar-denominated asset like life insurance?