[–] EyeOfHorus ago
Your assumption that economic growth is contingent on an ever increasing supply of currency or gold is incorrect. There is something drastically wrong with your understand of money supply. So much so that I can't possible teach you. Sorry.
You don't make sense "assuming there is enough gold to pay a doctor more than a miner." Its called supply and demand.
[–] avgwhtguy1 ago (edited ago)
I am an economist and I'm trying to teach you. The money supply has to grow with the economy, or deflation will occur to point where pennies have to be cut into fractions (or the dollar becomes useless).
[–] EyeOfHorus ago
Hey, I'm an economist too. I come across people like you all the time that believe the same fallacy, so don't feel too bad about it.
Probably originated in some shitty econ101 text book you read and your teacher/professor never challenged it.
Since economics is a religion to you I won't even try to correct you myself. But, I strongly recommend this article as food for thought. It might help you better understand economics. You've got to first question the "belief structure" you were taught in school. Otherwise I can't break you from the cult mindset. If something you've come to rely on as a foundation (money supply) is questioned it might make the insecure person deny criticism. It might rock your world. Its only human nature to at first deny opposing viewpoints. It would mean you are wrong, and nobody wants to be wrong.
If the money supply has to grow then why did Wiemar Republic fail? Why is Venezuela a shit hole? Or is it that they grew the money supply too fast? Perhaps you believe the money supply must be controlled by a central planner or central bank? So not really a free market. The money supply is then a monopoly.
What about Bitcoin? Is that money? Or currency? Its valuation is through the roof, but its growth is minimal. Would a digit currency have the same problems as your "cut pennies into fraction" argument?
Speaking of pennies, if 5 pennies in 1915 has the same purchasing power as 100 pennies now, then doesn't the USD currency have a long way to backtrack until its inflation is unwound? Are you really worried about cutting pennies? Its really a silly argument taught in econ101.