Dateline: 8 April 2017
A few years ago, I received an order for chicken plucker parts from a man named Borsodi. This name rang a bell because I had read a 1928 book called “This Ugly Civilization” by Ralph Borsodi. I had also read a 1974 interview with him and more recently, about him in “The New Agrarian Mind”.
Borsodi was a well-known economist with unconventional views.
I inquired if the customer was related to Ralph Borsodi, and it turned out he was his grandson.
The grandson, recently retired from academia, was doubtful about America’s economic future and was preparing to be more self-sufficient, hence the chicken plucker. This led me to believe that economic pessimism might be a Borsodi family trait or perhaps the grandson recognized the wisdom in his grandfather’s writings.
The younger Borsodi had few memories of his grandfather and those he had were not positive. It seemed the elder Borsodi was a rather cold person, preoccupied with his work, which is unfortunate.
Ralph Borsodi’s life and beliefs reveal a somewhat socialist leaning. Socialism was a common ideology among thinkers of his time who were troubled by the social problems caused by industrial capitalism.
Socialists are typically good at recognizing societal issues but not at finding practical solutions. They tend to advocate for more government control, which ultimately reduces personal liberty and increases suffering.
However, Ralph Borsodi was unique. Despite his socialist sympathies, he was a firm believer in decentralization, which contradicts socialist ideals. This makes him somewhat of a paradox, perhaps even an anarchist. Ultimately, it might be best to simply categorize him as a Decentralist.
What I find most compelling about Ralph Borsodi are his practical solutions to the problems of industrialism. His solutions were agrarian, aligning with the principles of decentralization.
Although his philosophy was influenced by Christianity, it was fundamentally humanist, not rooted in Biblical truth.
Regardless, Ralph Borsodi possessed a strong sense of practicality, as this series will demonstrate. I will be sharing excerpts from his self-published book, “Inflation is Coming And What To Do About It,” pictured at the top.
I purchased this rare book a while back and have been eager to share it with you. This topic may ring a bell to those familiar with my 2013 blog series, “How To Get Through The Coming Hyperinflation”.
Lately, there has been a surge in conversations and worries about inflation. As a small business owner, I’m seeing it firsthand in the rising costs of materials.
Inflation is a subtle form of theft, and hyperinflation is even worse – it’s the complete destruction of wealth, particularly paper assets like dollars and dollar-denominated assets. Tangible assets and personal skills, however, retain their value.
Borsodi’s book, first published in 1945, accurately predicted the Great Depression and post-WWII inflation. However, the degree of inflation he anticipated did not materialize, proving his prediction inaccurate.
This is often the case with those who make dire economic predictions. Nevertheless, they are sometimes right. History teaches us that paper money systems inevitably fail, causing widespread hardship. The current situation in Venezuela is a prime example.
I value the lessons history offers about fiat currency systems. Consequently, I’m predisposed to agree with Ralph Borsodi’s book. Although his timing was off, his fundamental argument remains valid.
What I appreciate most is Borsodi’s practical advice for navigating inflation. Even if hyperinflation doesn’t occur, his recommendations remain sound.
to got to Part 2 of this series