link: http://bit.ly/1IzCXAg
Hot And Trending...
Trending
- What If Batman Was From Chennai? | Put Chutney
- South India 101 - The Banana Leaf | Put Chutney
- WSJ Fed mouthpiece John #Hilsenrath just reported #theFed is unlikely to raise rates in 2015. Anyone who listens to me knew this in Jan.
- O Haseena Lagdi Katrina HD Full Song | Naughty Jatts | Neeru Bajwa, Arya Babbar, Roshan Prince
- Epistemological foundation for AE
- At 2.95% the yield on 10-year treasuries is the highest since July of 2011. That is not quite 7 years ago. But if yields go back to where they were in April 2010, just over 8 years ago, they will hit 4%. If me made it this far what's to stop the trend from continuing?
- The #dollar sell off continues. The dollar index just broke below 89, and the dollar is down to 6.33 against the Chinese yuan, on its way to record low. Gold is up another 6 bucks, trading above $1,363.
- RT @GrabienMedia: VIDEO - @HillaryClinton: ‘I Am Going to Make Some Employers Go To Jail for Wage Theft’ http://t.co/5zA4hgWAHE
- According to the WGC, gold has become more of a mainstream investment option. Investment demand for the yellow metal has grown an average of 18% per year since 2001. http://bit.ly/2DBybKr
- Varanasi & Sarnath, India (in HD)
Tuesday, December 1, 2015
Deflation caused by economy growth makes people richer, right?
I'm having a real understanding problem after studying some libertarian views. Some libertarians in my country (Germany) publicly talk about the fact that we could be around 6 times richer with the economic growth alone. They explain it with the fact our economy had an average growth of around 3% per year over the last 60 years. The result according to them should have been a currency value around 6 times as much. The reason for them that it didnt have such growth was the inflation of the currency through central bank and private banks. Makes kind of sense. Then I read stuff from Jörg-Guido Hülsmann and find a video of him talking about deflation. He says that deflation, even caused by economic growth in a free market will not only lead to falling prices but also to falling wages. This is - according to Hülsmann - because the employers anticipate falling prices even more and adjust their future prices and therefor their employees wages as well immediately. He explains, that the wages for the workers will fall less than the prices for goods, because the goods will be either used by the consumer goods producers OR by the production goods producers NOT BY BOTH (less competition). But the workers will have the choice to work either in the one or the other area and therefor will be able to negotiate better wages. My question: What is true? And is there a possibility to show other people how much more money people could have by now in a free society with an ordinary job (taxation left out)? The first methode was always quite compelling but I dont know anymore if its true to austrian economics or if Hülsmann is. Maybe I just didn't understand it right aswell? Any help is welcome, thanks alot!! P.S. here is the video of Hülsmann at the right timestamp: https://youtu.be/LhKC6F_-uzk?list=PLDFA82051066933E9&t=1191