The only times we've had the explosive growth that politicians fantasize about were after WWII ended and the computer revolution.

After WWII, the feds (amazingly) reduced the budget dramatically and the US was the only country left standing with production capacity. People took their money and made decisions with it that created the goldilocks baby booomer generation.

In the 80s and 90s, the computer revolution in business increased productivity so much that the economy couldn't help but grow even with a recession in the early 90s.

That is all to say that without very special circumstances the monetary policy of grinding inflation kills growth. People rationally expect the value of their currency to deflate and it prevents the majority from getting ahead over time.

And it makes me wonder, if we had a bitcoin monetary standard would we see that kind of growth? If people could rely on their purchasing power to be stable or maybe even increase, would savings and investment increase?

I think so.

Posted Using LeoFinance ^Beta