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[–] CanIHazPhD ago 

Diminishing returns is the explanation. It happens in all industries. I already gave you some good examples on why it's easier to exploit resources at first. I recommend you think on those again. This also explains why modern economies can't make this growths in production. Just think why the gold rush started and stopped and even you should realize it. The threshold is not a magic number, but it's easy to see, the same threshold that separates a growing economy from a booming one.

The africans did got most if not all their low hanging fruit, it happened during colonialism.

It's funny you have a low opinion of well formed arguments that have countered every single one of your points. but that's not here nor there.

Now, for a change of pace let's see you explain why, barring a minuscule number of exceptions (which can be and have been easily explained) sustained deflation has lead to recession in all modern economies. I'll await your answer.

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[–] ForTheUltimate ago 

I already answered before.

Say market set interest rates are at 6%. If you lower them to reach your stupid inflation target, now firms that are only profitable at 5% take and bid up resources used by those at 6%. Translation: ressources are not going from 6% return projects to 5%, and this isn't corrected my natural market forces, because you've artificially suppressed them with lower itnerest rates. The proof is when you idiots raise your interest rates, you get a recession everytime and more surely so, the longer you've fed inefficiency that can't survive without your intervention.

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[–] CanIHazPhD ago 

No, you didn't. This is your supposed explanation on why deflation would lead to a better allocation of resources (and a false one at that).

I'm asking you to explain the historical reality that, save for very particular exceptions (that can be explained by secondary factors), deflation has lead to loss of growth, recessions and crashes throughout modern economical history. But you can't right? That's why you tried that it about intervention at the end, that makes no sense at all.