So for you poor children out there who are still only learning - TopicsExpress



          

So for you poor children out there who are still only learning what your school wants you to learn, there is actually another type of economic system. We are only studying Keynezian economics in class, which holds the belief that inflation is a good thing when in reality it only creates a false demand for product by raising the prices and putting more money in the pockets of people ( which sounds good, but if you have more money businesses charge more money and its just a constant cycle of raising wages and prices) and lowers the value of the dollar (which is basically what hyperinflation does, just over a longer period of time). there is, however, another kind of economic system. This is called Austrian economics, which holds the believes that deflation is in fact a good thing because they dont try to mess with things by the government intervening in the free market and just follows the natural laws of economics. For example, when you have a high demand in something and little supply, the laws of economics state that prices will go up and visa versa. Keynezian economists would say: lets raise those prices by 2% so we can make more money, also lets raise the wages at 2% so people will spend their money. After a long period of time the value of something that was 1$ is now 10$. Basically all we have done is devalued the dollar. An Austrian economists would look at this and say: WTF was the point of that! you havent grown your economy, all youve done is make it seem like you are incapable of producing enough supply of a product to meet the demands of your countries wants. Supply and demand is a very simple concept that can be taught to a fifth grader. Also, Austrian economics believe in free and open markets with little or no government intervention (or people trying to shift the direction of the market to have all the money pool towards a specific group of people *hint hint*). All in all Austrian economics supports free markets, private property and absence of government intervention.This is a very brief description of the differences between the two and it is based on my own very biased opinion, there are good qualities and bad qualities in each of these systems. DO NOT form your opinions about this based on what i have said because i have not said everything about each system. So if you feel the need to learn more about the things we dont get taught and that i didnt say, feel free to ask me more about it. But id really prefer it if you used what the internet was meant for and looked it up yourself...
Posted on: Thu, 15 Jan 2015 02:09:34 +0000

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