Can you explain the concept of technology being deflationary?

The idea is that technological advances increase efficiency and reduce costs, which theoretically should lead to decreasing prices. In other words, technology has a deflationary effect on prices.

If technology is deflationary, then why do we have inflation?

That's because of government money printing. When the government prints money, it injects more money into the economy, which can lead to inflation. The more money there is in circulation, the less each unit of currency is worth, which drives up prices.

Why does the government need to print money?

The national debt has become too large to be paid back without significant consequences. As a result, the government has two options: default on the debt, which would result in a system collapse, or devalue the debt through inflation.

What problems does money printing cause?

Newly printed money tends to flow into the hands of those who already own assets, such as the rich. This concentration of wealth means that everyone else's lives become more difficult, and productivity gains that should benefit society as a whole are instead concentrated in the hands of a few. Many of the problems we see in the world today can be traced back to this manipulation of money.

How can we fix this problem?

One potential solution is to adopt a form of money that has a fixed supply and cannot be manipulated by the government. This could help to reduce inflation and ensure that everyone benefits from productivity gains, rather than just a select few. By addressing this issue, we could promote a fairer distribution of resources and potentially alleviate many of the problems we see in the world today.

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