link: http://bit.ly/1IzCXAg
Hot And Trending...
Trending
- Hey guys, let's build some pyramids!
 - Cryptocurrency like Bitcoin is taking the market by storm, but its volatility should raise questions: http://bit.ly/2lInIjn
 - Crazy how a higher than expected inflation number causes traders to sell gold and buy dollars. Gold does best when inflation is rising, and higher inflation means the dollar is losing purchasing power. The selling should be in the bond and stock markets.
 - The Indian government can't keep up with the mismatch in the demand and supply of new currency notes. http://bit.ly/2ol5xCb
 - What do Trump and Clinton plan to do to address Fed reform? Find out where they stand with our handy infographic:… http://bit.ly/2fU8clV
 - Regulators to Shut Down Health Republic Insurance of New York - Thanks Obama!
 - Or did the Clinton machine get Comey's mind right just in the nick of time?
 - My Kitco News spot. Gold in 2016 and beyond. Buy before speculators realize the economy needs stimulus. @Sch iffGold http://bit.ly/1PKVfWi
 - With low rates and inflation on the rise, 2017 could still support a healthy economy for gold:… http://bit.ly/2f9w6pM
 - Have you guys seen these? Very entertaining (Rap Battle between "Keynes and Hayek")
 
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