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And it'll all be thanks to tightening monetary policy! Which is lighthearted, but not a joke. Economic theory says that the economic cycle helps to free up mis
by dougmwne 4y ago
And it'll all be thanks to tightening monetary policy!
Which is lighthearted, but not a joke. Economic theory says that the economic cycle helps to free up misallocated resources.
- saurik 4y agoIsn't it also what misallocated those resources in the first place? Wouldn't it be better to never encourage people to just throw money away on subsidized BS business models that seem to mostly empower monopolies whose main barrier to entry is "has so much cash they can put any business that is wasting time trying to have revenue out of its misery"?
- dougmwne 4y agoThe way the theory goes, people need to be encouraged to take risks. To gamble it all on a crazy new business idea that might not work out at all. Risk is the source of all new value. You can do this by making money very cheap and giving very few other otherlets for risk-free dividends. People will create all manner of crazy businesses. Some will be duds, some will be frauds, and some will be the future. Then to sort out which is which, you have to turn off the flood of money.