Interviews

Steve Kaaru

Craig Wright discusses economic policies, the housing bubble and Bitcoin

In a recent discussion with fellow Australian economist Steve Keen and Metanet TV editor Jon Southurst, Dr. Craig Wright shared his thoughts on monetary and economic policies, the debt and financial crisis, Bitcoin and much more.

Dr. Wright considers himself a neoclassical economist. This approach focuses on the determination of outputs and income distributions in the market through supply and demand. In order to understand economics, you must comprehend the interaction of government and rules with economics and growth, he stated.

While economic policies have continued to focus on the monetary side, they have ignored a much more important aspect; the amount of capital we have available in the society. The monetary aspect is easy to manipulate, Dr. Wright stated, stressing the need to formulate policies that factor in the available capital.

Dr. Wright and Keen also discussed the housing bubble that has threatened the financial systems of advanced economies including the U.S. and Australia. In the U.S., the political push to have everyone own a house, no matter their credit score was responsible for the inflating house prices.

The economic systems in place have also served to purposely mislead us as to what constitutes an investment. All through school, we are lied to that investment is putting our money in a bank for the bankers and the government to play around with.

“Investment would be ‘I’m searching for a new source of coal,’ ‘I’m finding a better way of getting oil,’ ‘I’m inventing a new technique to make food,’ ‘I’m building a factory that’s going to create something more efficiently.’ That’s investment,” Dr. Wright explained.

Dr. Wright also sought to correct a common misconception that Bitcoin was developed to take away the government’s hold on the economy:

The idea that Bitcoin destroys monetary policy is actually incorrect. It’s a lie told by anarchists to mislead people about how Bitcoin works.

True to his philosophy that Bitcoin is not anti-government, Dr. Wright explained how people on the SegWitCoin (BTC) camp have misled the world into thinking Bitcoin is an anonymous currency that can shield them from the reach of the law. One of the reasons this narrative has become widespread is because Bitcoin was launched during the height of the housing bubble. Early adopters started hailing Bitcoin as the alternative that would topple the existing legacy systems. This was never the motivation behind Bitcoin, Dr. Wright explained.

When you properly scale Bitcoin, it’s one billion times more efficient than any system we have. It’s more efficient than Visa, Mastercard, banks, everything combined.

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