SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Residential Real Estate Crash Index
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: grusum who wrote (151253)9/27/2008 4:21:00 PM
From: GraceZRead Replies (3) of 306849
 
can you have general deflation and a thriving economy at the same time?


Absolutely, I've said many times that people could adjust to mild stable rates of deflation as easily as they adjust to mild stable rates of inflation. Falling general price levels are the natural outcome of increases in productivity. The reason we have inflation is because government attempts to redistribute the monetary gains to those who aren't the immediate beneficiaries of productivity gains.

To have it work the government would have to get out of the business of trying to even out economic outcomes, to get out of the attempts to redistribute the returns from productivity gains, over time as well as over populations.

I have little hope this could happen here in the US until the socialist state either goes bust as it did in the former Soviet Union or the per capita income falls so far below the rest of the world as it did in China. Once you start down the socialist road the incentives and disincentives are such that it takes the whole state getting a lot poorer before such things are abandoned.

Look how long it took to bust communist socialism. Right up to the dismantling of the Berlin Wall, economists in this country argued that government imposed socialism was a superior economic system, one that was more "fair" with less waste. Some are still arguing that all it takes is the "right" people to be in power! Ha! Hayek shot that notion down over fifty years ago with his "The Road to Serfdom" and his ideas were proven in practice with the division between East and West Germany.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News