The article discusses the relationship between fiat money and the growth of the modern state. It explains how the emergence of money as a market phenomenon facilitates exchange and the division of labor.

The article traces the historical events in the United States that led to the adoption of fiat currency and the expansion of government power.

It highlights key moments such as the establishment of income taxes, the creation of national banks, the abandonment of the gold standard, and the increase in government intervention during the Progressive Era and the New Deal.

The article argues that fiat money enables the government to increase its spending and control over the economy, and suggests that a return to private commodity money is necessary to limit government power.

Link: mises.org/wire/modern-st…