Friday, February 26, 2010

Wealth = Lower Prices?

Man is obsessed with more. More money, more women, more cars. However, wealth does not necessarily mean more. In what may be seen as counterintuitive, in pure unadulterated capitalism wealth does indeed mean less, in terms of prices paid for goods and services. I touched on this briefly in my post on CPI since 1800:

The capitalists who have become the most wealthy have provided more value for less money, reducing the time and cost to make and sell things that people want. Bill Gates, Steve Jobs, Michael Dell, Henry Ford, etc. They all provided value to a large amount of people.

Unfortunately, the Federal Reserve has erased the deflationary inevitability of capitalism by creating money/credit out of thin air. It is true that humans create money through their ingenuity, but having a monopolistic oligarchy issue counterfeit money and steal savings is unfathomable. This is why one of the tenets of Marx was to control the education of people. If people knew what the Fed really did, they would revolt in a second. Instead we have looters and moochers stealing from us every day in broad daylight, sponsored by government fools.

No comments: