Capitalism Magazine

Don't Lose Sleep over Deflation

Wed, 28 Jul 2010 22:23:00 +0000

Modern economists don't understand what deflation is or why, in reality, we have much more to fear from inflation.

Shahid Insaf

Fri, 06 Aug 2010 23:32:55 +0000

Great article. The simplicity of the solution makes one wonder why the so-called experts on the issue do not ever get it. With an incorrect basic philosophy entrenched in reversed causality, even the simplest problems appear daunting.

Luis M

Thu, 12 Aug 2010 02:07:07 +0000

I'm a small business owner, I'm already at cost If there is a deflationary spiral like in the 1970's aka Nixon era, the I'm out of business and the sales will go to companies overseas and increase our debts to foriegn companies..OK so me going out of business is not going to bring the country down, but I represent some percentage of the US economy eventually all that money going overseas is going to bankrupt the US.

Julien Couvreur

Fri, 13 Aug 2010 22:04:32 +0000

A side-note on terminology: I think it would be more productive to talk about economic "development" than economic "growth".

Development implies that the economic system adapts and becomes better suited to fulfilling needs, whereas growth implies that it becomes bigger. It's not clear why "bigger" would be desirable and what would be the relevant measure that should increase (GDP is certainly not it).