Former Brexit Party Leader Nigel Farage told Newsmax on Tuesday that "inflation is a disease of money" caused by a government that has forgotten the financial lessons of 50 years ago and has not been fiscally responsible "for an extraordinary period of time."
"Remember, just a couple of years ago, modern monetary theory," Farage said during an appearance on "Carl Higbie FRONTLINE." "Remember all that stuff circulating? We can produce loads of money, all the old rules don't apply, and that's why the Fed and the Bank of England said, 'Oh, no, no, no! Don't worry your little heads about inflation, that will never happen! Interest rates will stay low forever!'
"Inflation is a disease of money caused by government," he continued. "We learned this back in the 1970s. Milton Friedman wrote about it extensively. We [the United Kingdom] put in place [former Prime Minister] Mrs. [Margaret] Thatcher, who was, in fact, the leading global proponent of monetarist policies. She said the medicine will taste absolutely horrible, but we will cure inflation. You know, funny thing: it worked. It worked. But the modern day politicians and central bankers have forgotten all the rules we learned 50 years ago, and that's why we've had inflation back in the system."
Farage said that at some point, the budgets of Western governments have to get "back in balance" and stressed that there's two ways to go about balancing the books.
"Either you massively cut government spending, but, politically, it's very hard to do," he said. "Even Margaret, even Margaret, at the peak of her powers, struggled to cut back spending. She did, but not that much. But what she did was to grow her way out of it. So, you either cut spending, or you produce real growth and, to produce real growth, you've got to make life easy for entrepreneurs.
"The odd thing is this: that despite very bad economic leadership in America – I mean, rudderless, frankly – there is still something in the American, there is still enough entrepreneurial flair and will for people to get out there and pursue their own American dream," he added.
The British politician then commented on the economic policies of former President Ronald Reagan, which are widely known as Reaganomics.
"The Reaganite philosophy was very, very interesting," Farage said. "Basically, get the hell out of government, get government out of the way, and you'll make entrepreneurship even greater. Get taxation right, get regulation right, to encourage people to be entrepreneurial."
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Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.
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