Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: InterceptPoint

Inflation is caused by printing money with nothing to back it (e.g. gold).

...

A gold peg can work on a temporary basis when a currency is in crisis. There isn’t enough gold long term, but there is enough goods and services in the economy provided that there is good economic growth not being hindered by government policy.

Look at historical cases of inflation and you’ll see that it’s triggered by a drop in productivity, not economic growth. Even the Wiemar Republic’s inflation was triggered by a massive work stoppage.


47 posted on 01/01/2019 5:35:13 PM PST by Moonman62 (Give a man a fish and he'll be a Democrat. Teach a man to fish and he'll be a responsible citizen.)
[ Post Reply | Private Reply | To 38 | View Replies ]


To: Moonman62

Inflation caused by a fall in productivity.
+++++
So explain why prices are up at least 1000% since 1950. Has productivity been on the wane for the last 70 years? You must know better than that.

In the short run you might be right. In the long run you aren’t.

Money is just a method for exchanging like value for goods and services. The market does its thing and exchanges are made and everyone is happy. Flood the market with fiat currency and I guarantee you that prices and wages will rise.


63 posted on 01/01/2019 7:05:05 PM PST by InterceptPoint (Ted, you finally endorsed. A)
[ Post Reply | Private Reply | To 47 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson