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To: Moonman62
"Economic growth is deflationary."

Nonsense. Examine the hottest regions of economic growth, such as LA out in California. Notice that their real estate is not going down in price (the definition of deflation).

Check out home prices in Nevada, too. Again, where you have economic growth, you have the opposite of deflation.

You should track down and slap whoever told you the outright falsehood that "economic growth is deflationary."

Watch the price of office space when a local economy heats up. Anyone who claims that economic growth is deflationary is so far wrong that it has to be more than ignorance; it really has to border on outright disinformation from willing propagandists.

307 posted on 11/28/2004 9:58:27 AM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack; Moonman62
Just keeping the thread readable with definitions

Then deflation is that over time money is becoming relatively more valuable than the other goods in the economy. Following that logic, deflation can occur because of a combination of four factors:

1. The supply of money goes down.
2. The supply of other goods goes up.
3. Demand for money goes up.
4. Demand for other goods goes down.

309 posted on 11/28/2004 10:07:05 AM PST by jpsb
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To: Southack; jpsb
Nonsense. Examine the hottest regions of economic growth, such as LA out in California. Notice that their real estate is not going down in price (the definition of deflation).

Price movements due to supply and demand in a market are neither inflation nor deflation. For instance, if the money supply is held constant and the prices for houses in California go up, then the prices for something else in the economy must go down to balance it out.

I'll repeat. Economic growth (more goods and services being produced) is deflationary.

363 posted on 11/29/2004 1:52:22 AM PST by Moonman62 (Federal Creed: If it moves tax it. If it keeps moving regulate it. If it stops moving subsidize it.)
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