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This article basicly says that money printing is good and we should do more of it. If one increase the amount of money with 10% then your money and your wage ha
by kennethh 13y ago
This article basicly says that money printing is good and we should do more of it. If one increase the amount of money with 10% then your money and your wage has decreased by 10%. Those who get access to the new money first would be able to buy things for the old price before everyone is aware of the increase in money supply. In practice this is the big banks and their best customers (hedge funds).
I would rather say there is no problem with demand, it is just the prices who are to high. Espesially with housing, gas and other fixed costs. Lower the prices and the demand will increase.
- kmdev 13y agoNot at all. While the author does end with a curve ball on the arts (which he then admits in the commments), the point is valid. Spending on infrastructure, education, reasearch, healthcare, exploration and the like contribute much more than the sum total of their costs. NASA is a well known example of this. DARPA as well. What you're describing contributes to a vicious cycle. Lowering prices means less revenue which translates to lay-offs, scaling back and cutting corners. That means worse quality and less demand, which means lower prices again - so on and so forth. Unfortunately, a simple supply and demand curve doesn't come close to describing a functioning modern economy.