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That model is based in Keynesian Economics. It's just not reality in many situations.

• Retric 4y ago
  Every model is wrong, some models are useful. Economic models, Keynesian or otherwise, are attacked and misapplied because individual players are better off with a larger slice of a smaller pie. Which doesn’t inherently invalidate these models, but few care about accuracy when billions of dollars are involved. When people talk about say ‘cap and trade’ what they really mean is give us a giant subsidy.
  • olalonde 4y ago
    > Economic models, Keynesian or otherwise, are attacked and misapplied because individual players are better off with a larger slice of a smaller pie. As if going off the gold standard reduced wealth inequality. https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/
    • Retric 4y ago
      You can make every individual better off while increasing wealth inequality. Just imagine how bad wealth inequality would get if you doubled everyone’s lifespan.
      • olalonde 4y ago
        > You can make every individual better off while increasing wealth inequality. Absolutely. I guess I misread you? I thought you were blaming sound money for wealth inequality.
    • zajio1am 4y ago
      The era between 1945 and 1971 was not based on gold standard, but it was Bretton Woods system, that worked in a significantly different way from both era before (traditional gold standard) and era after (floating currencies).
    • mrep 4y ago
      Is that a joke website or are they actually trying to tie the end of Breton woods to the quadrupling of lawyers per capita since 1971? The number of people who drown in a pool strongly correlates with how many films Nicolas Cage has appeared in [0] but that doesn't make it a causation. [0]: https://www.tylervigen.com/spurious-correlations https://www.tylervigen.com/spurious-correlations