Message from @ᴏᴠᴇʀꜱᴇᴇʀ ꜱᴛʀᴀꜱꜱᴇʀ
Discord ID: 687085387134402571
As workers get more productive, they’re able to produce more obviously. Causing a reduction in the price of such goods - but also an increase in wages.
Since workers are paid on their marginal product, both wages and prices rise/decline respectively.
This is the case for oil prices now, the supply curve will shift out causing a reduction in prices; a rise in real income.
Deflation refers to price deflation.
Yeah you might also be thinking of monetary deflation too, this is a reduction in the money supply. @abby_ella - not relevant here.
Hapakala donut
We're heading into a recession and the reason is depressed demand, for oil and everything else except hand sanitizer
GG @DrYuriMom, you just advanced to level 7!
I don't have or want to debate it endlessly. We'll see it and so there's no point.
I can agree with this statement, your actually right.
@DrYuriMom We aren’t heading for a recession.
The stock market dropping isn’t indicative of a recession because: the oil prices falling are due to an increase in supply - this is actually beneficial for the economy.
*was dropping
imagine taxing the rich
They are people too, they need to be taxed
Like everyone else
I'm sure SINT will poo poo this, but I'll post it
Hey can any ancap explain to me how money would work if there would be no government to print it or anyone to regulate illegal printing.
GG @ᴏᴠᴇʀꜱᴇᴇʀ ꜱᴛʀᴀꜱꜱᴇʀ, you just advanced to level 2!
Shoot anyone with to much money
GG @Deleted User, you just advanced to level 15!
Trade one of your child slaves for a 7.62 and blow their fucking head off
But do it from a distance, don’t get to close to their property or everyone else will blow your fucking skull in for tresspassing
Remember
If any of his property gets on your property thats a violation of the NAP
Uh careful with the violence and child slave talk
@ᴏᴠᴇʀꜱᴇᴇʀ ꜱᴛʀᴀꜱꜱᴇʀ I’m not ancap but banks would print their own money and target fraud via themselves - it’s like what the treasury does but the independent note issuers will conduct these operations themselves. It’s called free banking, I do support free banking to a large extent however I’m not exactly an anarchist so I don’t support competitive note issuing.
That would devalue the currency though
What would be gained by that?
Like it’s just the same system except no control over monetary policy
There’s a lot to be gained.
I.e we stop/reduce the business cycle among other things.
Doesn’t the business cycle argue that booms are started in part by an over-expansion of credit, which leads to a market correction?
A business cycle occurs when the market rate of interest falls below the natural rate of interest. A boom is created via this then an eventual bust.
Ok, so how does taking monetary policy out of the government’s hands prevent interest rates from falling below the natural interest rate?
Because the market rate will now be uninfluenced, it will follow the natural rate.
The natural rate of interest is the rate in which time preferences are equilibrated, savings and investments are allocated effectively. This rate is existing without the central bank’s intervention.
Is that what happened before the Federal Reserve existed?