The emotional, almost visceral, conservative aversion to using monetary policy to stimulate the economy – the deep-seated hatred for the “printing press,” regardless of economic conditions – has always seemed genuinely felt. While skepticism towards politicians’ stated motivations is healthy, the Republican stance that monetary policy should always prioritize “hard money” felt rooted in something deeper, perhaps even a cultural “Money Mem.” Figures like Paul Ryan, even if their deficit concerns were debatable, seemed sincere in their monetary policy views, echoing Ayn Rand’s denunciations of paper money as a form of “looting.”
This “printing money is always bad” money mem proved remarkably resilient, stubbornly persisting despite consistent real-world evidence to the contrary. The inflation hawks who predicted runaway prices in 2009 continued their warnings for years, even as inflation remained stubbornly low. This unwavering belief, this money mem, seemed impervious to facts.
Then came the Trump era, and with it, a dramatic shift. Many of the staunchest “hard money” Republicans abruptly became advocates for looser monetary policy. This wasn’t a gradual evolution; it was an overnight conversion. Take, for instance, Kevin Warsh, a former Federal Reserve Board member once considered a potential Fed chair. Until recently, Warsh was a consistent voice for higher interest rates. Yet, in a sudden about-face, he penned an op-ed urging the Fed to halt rate hikes. The “hard money” money mem seemed to vanish as quickly as it had been asserted.
Now, there’s a legitimate argument to be made for the Fed pausing rate increases, and even that the latest hike was ill-advised. Such arguments, however, should be grounded in sound economic principles, not in opportunistic political maneuvering, and certainly not simply because it aligns with the desires of a political leader.
Yet, political expediency appears to be the driving force. The modern Republican Party prioritizes power above all else, discarding long-held principles when they become politically inconvenient. It is, unequivocally, Trump’s party. His pronouncements dictate party doctrine on every issue, including what was once a sacred “money mem.”
Trumpism, it turns out, trumps everything – even Ayn Rand, and the seemingly immutable “hard money” money mem that defined Republican monetary policy for so long.
