And in most of those 10,000 years growth was anaemic. Deflation has consequences, as I've already pointed out. Hasn't the dollar been around since at least the end of WWII?
Keynesian Economics
- Thread starter lifegoesonbrah
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Construction being up is pretty shocking, since the construction industry is very closely tied to the banking industry (for obvious reasons). As well, I don't know if that were true but it'd be retarded. Rent has been increasing impressively, this will drive up housing prices (because the amount you can make from renting is also used in calculation) but if you increase the supply you weigh down these effects so that rent isn't growing at a heavy rate and people won't have the pressure applied on them (or the increased housing prices from a lack of supply) to purchase a house instead of renting.
R&D Increases Production, it IS a form of investment. Companies (or other corporations) ARE spending, but they're spending on themselves. I know a year or two ago investment (pretty sure it was just one, but time sure does fly) was like 1 percent of 1.3 percent annual growth.
Sorry, my current focus is more on the history of banking since that's what I have on my reading list atm I've actually slacked off on keeping up on current events but for wannabe economists such as myself I would suggest the Fiscal Times. Do NOT, I repeat, DO NOT go to the Economist until you have a solid economic background. They produce good data, but their interpretations are extremely prejudicial.
Raising the banks reserve limit twice. The tax on undistributed profits, payments to SS kicked in all during the depression within the depression late 36 early 37.
yes easy credit did. The concept of free money. When the Fed lowered the interest rates it led to mal investment. We saw that right before the stock market crash the dot com and housing bubble. It causes prices to rise artificially. It is the same thing that is causing the cost of college to rise so much.
Colleges no longer assume the risk of making loans so they raise prices. College costs 3k per year govt gives out the loan. Next year the price is 3.5k per year. Govt still gives out the loan. And so on.
Easy credit caused the big crash on the railroad bubble. The House of Cook received unlimited money.
Not necessarily. as long as prices fall faster than wages that isn't a problem. When that happens your purchasing power gets better. Lower prices means higher demand. We saw that during the industrial revolution. Falling prices, lowered costs better purchasing power.
Different definitions of deflation need to be emphasized. Decreasing the money supply vs lowering prices.
"we will attempt intelligent and courageous deflation, and strike at government borrowing which enlarges the evil, and we will attack high cost of government...There hasn't been a recovery from the waste and abnormalities of war since the story of mankind was first written..." --Warren G. Harding
lmao yes they doI'm so mad at you. Ask me why :3
Speculators would borrow if they saw profit, how much is 2-5% when you're making a return of 19%-38%? The ideas looked genuine, and in fact they are... look at the Internet now, godaddy and other website adds are on tv, but the technology hadn't caught up with speculation. Mistakes happen. RCB
Yep, why do they need so many different measures of inflation? Its easier to manage the illusion just like 3 card monty and shell games work much better when you use more than one shell or card.
The dollar(Fed reserve note) was brand spankin new on August 8, 1971.
Growth was anemic because of low population and lack of technology, not because there weren't enough pieces of paper floating around.
sync0s
Well-Known Member
Doug Wead said that if it comes down to giving their delegates in support to Romney they want to see an audit of the fed.
OGEvilgenius
Well-Known Member
Excuse me? You'll have to elaborate because what you have said could be interpreted in so many different ways depending on context. It is obvious consumption would be slowed in such a system, but it wouldn't just stop. We certainly wouldn't have a market for automated egg crackers, and that's a good thing.
What about the Sterling pound?
But that's pretty interesting, what did we use before that o.0? (Banknotes?)
Yes, and a common world-wide ban on usury didn't retard liquidity and economic development.
What I'm saying is that deflation punishes spenders. Spenders = Consumers. Why would I buy that brand new 2012 car for 50,000 when I know next year I can get a brand new 2013 car with even more amenities for 45,000 dollars? It's that economic calculation, which makes sense for the consumer, that causes the downward spiral of deflation. Some argue that unions screw up market reflexes and other say that the sticky theory dictates that there's usually going to be significant lag-time between the changes in prices and wages (I don't care how much sense it makes, no one likes to take a paycut).
EDIT:
This is fundamentally what happened to Japan that was their 'Lost Decade'.
Or maybe the Urban cost of living is higher than the rural cost of living. Maybe because wage growth is a whole different ball game from the cost of a changing bag of goods.
Metal backing for the Pound was eliminated in 1931.
What did the USA use for money prior to 1971? gold and silver! Paper receipts that represented them, they called the paper receipts dollars too.
On August 8, 1971 President Nixon closed the gold convertibility window and the US dollar became wholly fiat.
Gold became legal for US citizens to own in 1974
Really? I thought that pragmatically specie payments on any bank receipt had been suspended for decades already.
Want to know where the word dollar came from :3