Deficits Cause Inflation, Which Attacks Pensions and Savings

Prophet Statesmen, Ezra Taft Benson

The tragedy of destroying fixed pension and savings is but one cruelty of inflation. Economists point out to us that it discourages savings, for why should people save with the value of saved dollars being constantly lessened. For that matter, these same people think, why buy U. S. Government Bonds? They have a fixed earning rate and pay off with inflated dollars that are worth less.

Inflation, like big government, big debt and deficit spending need not be inevitable. Perhaps it is just the sad experience of a whole generation which leads people to expect that their dollars will always be worth less each year.

We must understand that it is currently huge government deficits, the piling up of more and more national debt and the repeated excessive wage increases which largely spark the inflationary trend in America. Surely, less and less government spending and a balanced budget would go a long way to curbing inflation and stabilizing the American dollar.

All consumers feel the pressure of rising prices. The threat to overall economic stability is the greatest danger of all. Inflation is nobody’s friend.

All groups, including labor and industry, should so conduct themselves as to check the development of a condition contrary to the national welfare. Experience indicates that if needful restraints are not exercised voluntarily, there is a resort to stronger measures—measures which I believe are contrary to the goals of a free society.

Source: Ezra Taft Benson, 1962, The Red Carpet, P. 173. Ezra Taft Ben­son (1899–1994) served as thir­teenth Pres­i­dent of The Church of Jesus Christ of Latter-day Saints, and as Sec­re­tary of Agri­cul­ture for both terms of Dwight D. Eisenhower’s presidency.