Rich Nost on nostr

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Guy Swann · 14w

There is no false mental model more destructive than the idea that prices are supposed increase over time. All prices should fall if the economy is more productive. Indefinitely. It is literally only...

Rich Nost @Rich Nost 1781468277

Why is it that the only deflationary periods we have experienced in modern economic history usually have "panic" or "depression" in their name. Are there historic examples of deflation being awesome?

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Rich Nost · 14w

I suppose 1870-1890-ish can be a counter-example.

Matthew D · 14w

Fractional reserve banking

Deflation is always “awesome”, it’s only terrifying if the whole system is based on a debt based Ponzi scheme lol

Guy Swann · 14w

Yes. The period from the late 1870s to about 1900 experienced the most sustained natural price deflation probably in US history, and it also happens to be called “the Industrial Revolution.” And the greatest period of rising living standards occurred during this as well. The reason recent “de...