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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (1379)	2/28/1999 10:38:00 AM
From: Freedom Fighter	Respond to of 1722

Porc, >>Suppose the portion of this increased labor participation that is the result of fiat money must eventually result in these people being unemployed until savings and profits catch up and re-employ them. Is society not better off because they acquired job experience and new skills sooner rather than later? Would it be better if these people remained unemployed until enough gold certificates were in circulation to employ them << That's a good question and certainly should be part of the debate. I'm not certain that they wouldn't be employed regardless. The amount of gold in circulation does not control the economic activity. The gold level can remain constant and we could still grow rapidly. Goods and services prices are just a function of the amount of gold in circulation. As you have pointed out in the past, we used to function quite well as a country with mild price deflation. (as opposed to credit deflation). Economic activity would still be the result of investing savings. This would be enough to produce "full employment" (whatever that really means) I think it's best to think about savings and money in terms of barter. It may be barbaric, but it clears the thought process. Wayne