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- With the passing of Supreme Court justice #Scalia, Obama will nominate a replacement who will ignore rather than enforce the Constitution!
- China, as well as other countries including Russia, desperately want to reduce their dependence on the dollar. http://bit.ly/2y4vbEo
- The fact that #gold has not already taken off shows just how little investors understand about what is happening. Stocks will keep falling until the Fed gives in, reverses its rate policy, and embraces QE4. The former is bullish for gold, the later is super bullish!
- This budget deal is a disaster. It ads 400 billion to the debt over the next 2 years. The 80 billion in disaster relief is one time (until the next disaster), but the 160 billion in spending will recur every year. Over 10 years that adds another 1.6 trillion to the national debt.
- Ep. 273: Trump Hypocrisy on Jobs Raises Concerns: http://bit.ly/2usODUl via @YouTube
- Another step for people to begin using sound money in regular business transactions. http://bit.ly/2tZ5vlz
- Analysts have calculated that if the interest rate on Treasury debt stood at 6.2% – their level in 2000 – the annual interest payment on the current debt would nearly triple to $1.3 trillion annually. http://bit.ly/2FnLGdR
- @DancewtheReaper Yep, they have been buying the dips the whole way down. I supposed this rally we also fail, and we will break to new lows soon.
- Had the same 2% inflation assumption used to calculate Q1 #GDP been applied to Q2, the reported growth rate would have been just 1.6%!
- The amount of silver flowing in Swiss wastewater comes in at about 3,000 kilograms every year. http://bit.ly/2gCWjPO
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