Fiat money is generally associated with a more statist society. If politicians don t have to consult citizens or tax them directly to fund government programs, such as wars, then politicians can, and do, implement whatever programs they wish. Thus, fiat money is a necessary ingredient for tyranny. Programs can be funded with money created by the banking system. In effect, politicians and banks embezzle the purchasing power of savings.
Commodity money protects property and is protected by the notion of private property.
With fiat money, when money is diluted by the creation of additional money out of nothing, the property rights of savers and those who have been promised future payments, such as pensions, are violated. It is difficult to sustain government deficits with commodity money because they would have to be funded by borrowing. Since a commodity money supply cannot arbitrarily be expanded, interest rates would increase if government increased borrowing. Manufacturers and others would then object to higher interest rates, causing government to reduce spending, and thereby causing deficits to decrease. Eventually, the debts are defaulted.