Deflation is Normal

A concepualization of what a healthy, deflationary economy might look like. Hard to imagine, since we've spent our childhoods having the truth beat out of us.

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I will get to the Psychology videos, I promise.

www.staresattheworld.com

Category:

Nonprofits & Activism

Tags:

• Austrian Economics
• Economics
• Deflationary currency
• money
• inflation
• collapse Money Crisis

[Worldslargestipod]

just a correction. You say 'people with a high time preference who save for the future' -- High time preference refers to people who place a high value on instant gratification. Forward looking folk are the 'low time preference' crowd.

[Aurini]

@Worldslargestipod You're right - what I was going for "high genetic tolerance for low time preference" IE will power.

[182511419139208]

but daddy told me that all kids played meat popcicle

[Aurini]

@Darkwizzrobe Why do you think counter-currencies are illegal? ;)

[waldentree]

Put your Federal Reserve Notes under the mattress people.

[hagunadari]

@hagunadari One correction (I wrote to fast). I should've wrote:

"This leads to a false conclusion that economic growth is lead by consumption and not production.". Sorry for that (and a third post in a row :/).

Great video, by the way - it's definitely the time to start applying logic to economy and bust the myth that it's something almost as understandable as magic, explaining it as "this is just how it works, stop asking questions already".

[hagunadari]

@hagunadari ...of a free market, when you have a choice of NOT to buy. With today inflation it is encouraged to buy ASAP. This leads to a false conclusion that economic growth is lead by demand and not supply.

Sidenote - GDP is not a measure of economic growth, it is a representation in monetary means. WIth high enough inflation GDP can grow while there are less goods which does not represent the wealth of the nation (but is presented as such by politicians).

[hagunadari]

@BaptizedinFire Obviously I am not the author of this video (or the one you talk about), but what the other author argued is he says what he is saying because "it is an accepted economy theory" and he is doing it to help economic students pass the exams. His arguments for inflation are easily debunked if you apply logic. F.e. "demand falls with deflation" is not entirely true - it falls to a moment of equilibrium when you are willing to pay the offered price. It's the essence...

[gunsandbullhorns]

Motörhead and ecigs rule!!! ...oh yeah, and your points about deflation and money are spot-on.

[BaptizedinFire]

BTW Aurini, have you seen that video "deflation - why it's so much scarier than inflation!"? I watched it, but I don't buy what he says at all. But I'm far from an expert, so if you've seen it, what do you think of it?

[BaptizedinFire]

Never thought I'd see an economics video with a Motorhead backdrop, fucking awesome.

[MirageScience]

@Aurini Cheating is easy to get around with encryption. You can make a program that's encrypted and changes its decryption keys randomly as to now allow for even the creator to decrypt it, this is one reason why some people are afread of robot technologoes that can learn, because they too can be encrypted in the same type of manner.