Board 8 > Lower Taxes Are Good - Even If the Deficit Rises [dwmf]

(+) Yeah! (+)

you still haven't explained how economies work under deflation

why would i ever buy anything with gold when the gold will be worth more tomorrow than it is worth today?
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it will eventually balance out with a shitty economy where gold will maintain its value because the economy is no longer growing
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banananor posted...

you still haven't explained how economies work under deflation

why would i ever buy anything with gold when the gold will be worth more tomorrow than it is worth today?

Because if you didn't buy food you would die.

There was massive deflation in the late 19th and early 20th centuries. This also coincided with huge amounts of economic growth and dramatic increases in the average person's standard of living.

You're just completely and totally wrong about everything, that's all.
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"Why would anyone ever buy a flat-screen TV when the price will just go down next week?"

And yet, somehow, millions are sold per year.
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i mean, if you can explain how the great depression happened i'm all ears as well

edit: i take that back. didn't see your example, which i appreciate. was going to nail you for remaining vague

edit: i take back my takeback, your book link was insulting
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i mean, if you can explain how the great depression happened i'm all ears as well

https://mises.org/library/americas-great-depression

Enjoy!
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are you arguing that inflation is bad for the economy?
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but i'm serious. if your ideal is that everyone spends the bare minimum of money required to survive, our quality of life will be terrible
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banananor posted...

but i'm serious. if your ideal is that everyone spends the bare minimum of money required to survive, our quality of life will be terrible

Nope, the opposite. Because the money you don't "spend" is saved and invested. Which is literally how all technological progress is made.
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banananor posted...

are you arguing that inflation is bad for the economy?

Yep, it's terrible. It encourages people to spend more quickly and punishes savings and investment.
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SmartMuffin posted...

banananor posted...

are you arguing that inflation is bad for the economy?

Yep, it's terrible. It encourages people to spend more quickly and punishes savings and investment.

hmm, i mean, i totally might be wrong on this (and am willing to be schooled), but my impression was that inflation encourages investment

90% of my wealth is invested in companies, because if i don't invest it, my money will deprecate in value due to inflation

i'm thinking about the punishing savings part. i guess, yeah, it does punish pure savings
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pure savings should be punished, absolutely
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SmartMuffin posted...

Kenri posted...

SmartMuffin posted...

You want fewer people to be rich

Did I stutter??

Nope. Nice to see someone actually admit it for a change though. Most socialists lie and pretend like their preferred policies would make the poor rich, rather than admit that no, they'd prefer the rich to be poor instead.

It's all relative anyway so it amounts to about the same.
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It's all relative anyway

It's really, really not.
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hmm, i mean, i totally might be wrong on this (and am willing to be schooled), but my impression was that inflation encourages investment

It encourages you to invest your money in assets rather than leaving it in cash, but that's not necessarily good as assets are non-liquid. Not all assets are productive, either. Real estate is inflation-resistant, but it's not necessarily an "investment" in any real sense.
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SmartMuffin posted...

banananor posted...

but i'm serious. if your ideal is that everyone spends the bare minimum of money required to survive, our quality of life will be terrible

Nope, the opposite. Because the money you don't "spend" is saved and invested. Which is literally how all technological progress is made.

This seems like one of those "True on paper, horribly inaccurate in practice" kind of things
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i guess that i'll add that when money moves to someone else, it's not like it disappears. it goes to someone or something else and moves the economy along

and companies don't pay out if nobody is buying their product
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https://imgur.com/a/YSUV1

source: cbs

I guess the $700bln government bailout of the banks doesnt count lol
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i don't want rich people to be poor.
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