Since the beginning of the Industrial Revolution, technological advances in all industries, from farming to electronics, have lowered the cost of producing goods and services, so if money really kept a constant value, prices would continually fall to reflect the fact that is really does cost less to produce things. Even a stable price level means the value of money is falling, because it is not accounting for continually declining costs of production. Arguments against falling, or even stable, prices are common, but when they are examined in any detail, they do not seem to hold up. Meanwhile, the Fed continues its explicitly inflationary policies. The price level has increased by more than 20 times since the Fed was established in 1913. Twenty dollars buys less today than a dollar bought back then. When costs fall, prices should fall, not rise. Falling prices are not a bad thing. #TheJovialDissident
Posted on: Sun, 25 Jan 2015 21:44:23 +0000
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