With falling prices and a rising purchasing power of money people can now secure for themselves a greater amount of goods and services.
Oh the above part of the article is so full of BS, it is beyond credulity.
Oh it's alright if prices decline alright. But it is how that decline is achieved, either through demand reduction (Traditional economic theory) or supply increase (supply side economics).
Prices during the Great Depression returned to Pre-WWI levels Don... mainly due to the fact that nations went back on the gold standard to stabilize their currencies after the inflation created by WWI.
The Great Depression was a period where those WHO ALREADY POSSESSED WEALTH found their wealth made more valuable by lower prices for goods and services.
Prices went down because people didn't have the money to buy anything but absolute necessities. Thus, companies cut margins and did everything they could to reduce costs, including laying off masses of workers.
Somehow, I have a problem becoming wealthy off the backs of the common man who may not have the financials reasources that I might have.
Money must be put to work... ie: at risk, either loaned out directly in risky enterprises, or invested. It must not be squirreled away in one's mattress or in conservative savings accounts drawing 3% interest.
That investment of money is what creates additional wealth for even more people. Money, being merely a proxy for exchanging goods, must be utilized in order for economic growth to occur. If people all suddenly start to bank all of their money, they won't be buying anything and manufacturers will suddenly find themselves holding inventory they can't be sold.
Now I know you wish to inflict a massive economic depression on the world just to bring back the gold standard, do ya Don?
Regards,
Ron |
