RE: The Gold Standard Myth
1 yr
1 Min Read
123 words
...then it will experience deflation. I'm not sure why that is a bad thing
What makes you think deflation is a good thing? People presume that it is. What happens during deflationary periods? People lose jobs. Is that a good thing? Economic contraction takes place. Not a good thing.
Was the Great Depression a good period? No doubt that was deflationary. How about the last 25 years in Japan?
How would you like to see the value of all your assets decreasing. Would that make you happy?
I dont get how people feel wide spread deflation is of benefit. When you follow it all the way through, a lack of investing due to no returns means society will stall.
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I think we may be talking about two different things. I'm referring to price inflation ( a bad thing), which may lead to hyper inflation ( a really bad thing). Monetary inflation has occurred since the Federal reserve was established. A dollar then is worth a penny now. People loose jobs and the economy goes to hell during extended monetary inflation. Remember Jimmy Carter?
There are a LOT of lies about the Great Depression. History is typically a lie so I don't believe much of what I hear about the Great Depression
Why would an economy contract during a period of monetary deflation? If my dollar is worth more today than it was yesterday couldn't I buy more stuff with it? Wouldn't that cause demand to increase? Wouldn't that be an an economic expansion? Wouldn't more people gain jobs?