I’m once again engaged in a debate with a couple folks on a poli-sci section of a university sports forum, with a couple liberals schooled on what seems to be pretty typical economic theory they were taught at said university. I was curious about where I may have gone wrong (if I have) in my line of thought here and where I might improve upon my knowledge to debate on this topic.
As someone said in the refutation of Keynes topic, GDP seems to be a tricky subject, as I’m not sure I understand exactly what the hell it’s actually measuring when 70% of it is consumption in the US.
I feel that I could gain greatly from some pointers on this, as these folks really make me think about things and learn some things I might not have considered before.
Well, I read the discussion on inflation. It is wierd. The person you debated with said that prices won’t increase unless the money is spent or invested. But aren’t you implying that with a money supply increase?
And on the money supply, you said that a constant rate of increase is good, but I would throw that argument out. An increase in the money supply that is not uniform, in fact, cause various malinvestments that are the cause of business cycles. There is material on the Austrian Business Cycle theory floating around the website.
No, but many family members are, and an uncle is a professor there. I lived in Madison for 15 years before heading to Savannah, but am still an avid Badger fan.
I do understand what you mean, what I was trying to get at was to say that a stable rate of inflation would be the best in our economy, assuming we are going to have inflation of course. I know that inflation goes against the Austrian ideal of sound money, but I was trying to illustrate the point that if inflation is stable and business can make accurate prediction, then the amount is meaningless, therefore it shouldn’t matter if it’s a stable 3%, 20% or (gasp!) zero percent that we would have with sound money.
I think the poster (Lamont S1) is very obtuse, and wasn’t following the definition of inflation i was using, monetary supply inflation. I think most on this discussion board tend to think of rising prices when they think of inflation.