Notes and Reflections on Books and Media
by Hannah Leitheiser
#economics #book #capitalism
Wealth and Poverty: A New Edition for the Twenty-First Century
I'm not going to try to analyze the chapters on inflation in detail, some seems to be talking to other economists, and it's above me. Roughly, inflation and deflation were once a cycle, but now inflation is the norm, and the author attributes this to continued technological advancement in the last few centuries. Also, taxes are bad for inflation. Really in general Gilder thinks taxes are always an economic harm. As well, some on the trouble of fixing a basket of goods with stable value.
Inflation is sometimes seen as a tax on unused wealth (and perhaps a tax cut to borrowers -- although you'd best believe it's carefully factored into loans, so that would only apply to unexpected inflation). And too much is bad. Ironically, when in the 2008 deflation, a bunch of borrowers lost their homes, that triggered a cascade of bad things as well. So perhaps it would be better to say unexpected changes are bad.
Inflation means something else on pony image sites. Have a random image.