What is Economic Security?
One of the main causes of economic instability is inflation. When inflation increases, the value of money decreases proportionately. If those conditions continue, it can lead to an economic crisis, such as the Great Depression of 1929, which lasted an entire decade. Another instance of economic crisis occurred in Germany after World War I. The war had left Germany buried in debt and without any benefactors willing to lend it money. To compensate, the German Bank began printing an excess of paper money and loaned it to the government, which led to massive inflation. The currency became so worthless it took a wheelbarrow of paper money to buy one loaf of bread. Hitler’s rise to power—and the consequent loss of freedom for many German citizens—were attributed to Germany’s post war economic situation. America’s historic ability to borrow money (through the sale of U.S. Treasury bonds and notes) from foreign countries and from the citizens of those countries has been tied to two factors. First, the United States has never defaulted on its debt, and second, other countries recognize our political system as being the most stable in the world.
“True individual freedom cannot exist without economic security and independence. People who are hungry and out of a job are the stuff of which dictatorships are made.” –Franklin D. Roosevelt
What is Cyber Security. (Next Section)