Gold is not magic. Modest inflation is healthy.

A response to whippoorwillss response to Keynesian Economics

Category:

News & Politics

Tags:

• Gold
• Inflation
• Keynesian
• Economics

[Myndir]

7:05 - a problem here is that the the state has no money, except that which is taxed from society and the last thing to do during a recession is tax the private sector more. Deficit spending can delay this taxing but the deficit has to be paid off and if this happens too soon then another recession is certain.

In the rare event of monetary and tax-cutting policies reaching their limits, fisical measures are good, but too often this is used as a reason to spend more rather than either invest.

[j0hnwi11iams]

Tax is simply forcing people to spend. It is not as though the money is leaving the economy. It stays in circulation. I think there are questions about what a proper balance between the private and public sector should be, but tax is not in and of itself evil except in the minds of people who disagree about how it is being spent or who think they bear more of the burden than is fair.

[Myndir]

Tax is not necessarily an evil, but nor is spending necessarily a good thing. Taxation is, simply, the armed expropriation of one person's property to be used by by someone else.

Sometimes, that makes a lot of sense. But whenever the state spends money one has to ask (1) why is it being spent (2) who is spending it (3) is it being spent to effectively?

National income = spending + investment + exports - imports. If you increase gov. spending that money has to ultimately come from NI.

[j0hnwi11iams]

Taxes, when done fairly, are like fees paid for government services rendered. There are valid reasons why there may not be private enterprise and competition for government services, primarily because a service may function optimally as a monopoly. This is true for transportation, communication, and security, as well as other things. The question to be asked is what the tax payer gets in return for the taxes he pays.

[gergenheimer]

Sorry sir, you've piled up several fallacies on top of each other. "intrinsic value" and "use value" are long-ago debunked fallacies - all value is subjective based on individual preference and marginal utility. Another fallacy - "deflation is bad" If consumers can plan for rising prices in an inflationary environment, then producers can adjust to falling prices, and, consumers will not defer spending forever, ultimately, they want stuff and will buy it. (look at the computer market.)

[FeelGoodinc91]

If productivity were to decrease, so would the value of hoarded money. Thereby encouraging spending.

[Boomer1949]

Very good video. Your explanation of the value of Gold and what is happening in the economy is spot on. So many on youtube just don't get this whole concept.