BillSPrestonEsq
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- Oct 31, 2012
- 33
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- #101
I will say that if we changed over to the type of economic system I described, we would have deflation at first,
no dear we would have constant depression and stagnation!! Any increase in GDP, with a constant money supply, would mean deflation and so a huge incentive to put off all purchases until tomorrow when prices will be lower. Is this really over your head??????????????? Its Econ 101, class one day one. Sorry.
Ahhh yet more unwarranted douchebaggery... Please tell me why the demand for the dollar would rise if the supply rose with population??? That is the same amount of dollars per capita. That means land values would continue to rise as well as the value of other finite resources, as they should. It also means that prices of goods would remain the same unless influenced by some other force. Would you rather have constant inflation as we do now? Why save money when interest rates are lower than the rate of inflation? Just buy, buy, buy, that is until the next credit crunch where the wealthy can aquire more land, more resources, more goods at the expense of the struggling middle class.