08-14-2019, 10:48 AM
(08-14-2019, 09:23 AM)Hintergrund Wrote:(07-27-2019, 08:55 PM)pbrower2a Wrote: Capitalism fails in the short run when productivity overtakes consumption.
Not the other way round?
No. Excessive production triggers declining prices that trigger deflation if not stopped very early. Nothing in the economic sphere is worse than deflation, because it is self perpetuating. Spending drops to almost nothing when people know that anything they want will be cheaper tomorrow than today.
Intelligence is not knowledge and knowledge is not wisdom, but they all play well together.