Milton Friedman said that “Inflation is always and everywher…

Questions

Miltоn Friedmаn sаid thаt “Inflatiоn is always and everywhere a mоnetary phenomenon.” This is consistent with the quantity theory of money’s prediction that:

Selectiоns
frоm
the
Lаоzi:
 On
Government
 The
more
shаrp
weаpons
the
people
have,
The
more
disorder
is
fomented
in
the
family
and
state.

 The
more
adroit
and
clever
men
are,
 The
more
deceptive
things
are
brought
forth.

 
 The
more
laws
and
ordinances
are
promulgated,
 The
more
thieves
and
robbers
there
are.
 
 Do
not
value
goods
that
are
hard
to
come
by,
 and
the
people
will
not
steal.
 Do
not
display
objects
of
desire,
 And
the
people’s
minds
will
not
be
disturbed.
 Let
them
savor
their
food
and
find
beauty
in
their
clothing,
peace
in
their
dwellings,
and
joy
in
their
customs.
 Therefore
the
sage
says:

 I
value
tranquility,
 And
the
people
become
correct
by
themselves.

 I
take
no
action,
 And
the
people
become
prosperous
by
themselves.

 I
have
no
desires,
 And
the
people
of
themselves
become
like
uncarved
wood.
 Though
neighboring
states
are
within
sight
of
one
another,
People
will
reach
old
age
and
death
 and
yet
not
visit
one
another. QUESTIONS: 1. From reading these selections, how do you think that a Daoist ruler would manage his state?  2. Compare the authors’ vision of government to those of Confucius and of the Legalists.  Your answer must be in your own words- do not use direct quotes.  Your answer must be a minimum of 100 words.