Although normally well informed about the harm of big government, staffing business people I meet tend to fall for the fallacy that easy money policies help our economy.
"The inflation rate is not high," they say. Or "the economy is not great but it continues to grow." Or even, "Sure, the federal reserve is out of control, but the USA is far from the worst."
This line of thought, despite its elements of truth, ignores the staggering and rapidly increasing national debt. It ignores the obvious but rarely discussed "gentleman's default" that will eventually occur when taxes and asset confiscation fail to help us meet our debt obligations. It ignores that we're pissing away wealth with student loans that will never get paid and promises of medical care and retirement that can never be honored.
For those interested in studying this issue further, I came across this great post by the Mises Wire. Here is an excerpt:
Monetary interventionism, designed to create ever increasing amounts of credit, undermines personal responsibility. Easy credit encourages its beneficiaries to waste the capital entrusted to them because they can always hope to cover up their losses with new credits. However, the waste of capital is just a short-run consequence, and it concerns only material objects. Of greater importance is the impact of easy credit on the very persons of the beneficiaries. In fact, because they do not suffer the full negative consequences of their choices, they have a minor incentive to learn to understand the consequences of their actions, and also to personally care for these consequences. In short, lacking responsibility tends to destroy thinking in terms of causes and consequences, and also thinking in terms of good and bad. Thoughts become muddled. Personal respect and compassion give way to indifference, or at best to vague professions of respect and compassion without any personal commitment, demonstrated through action. Man is still a moral being, but his morality becomes deeply wounded.
Governments, business companies, and households have amassed skyrocketing debt. At the same time, growth rates remained moderate, despite one of the greatest and certainly the fastest technological revolution mankind has ever experienced, and despite the massive global extension of the division of labor. The combined force of information technology and globalization should have created double-digit real growth rates all over the planet, at least during the past twenty years. In fact, however, the countries of the European Union grew by just about two percent and the United States by about four percent per annum. All the possible productivity gains were squandered through excessive private and public consumption, made possible by easy credit.