I think Stu is saying that for a producer, it’s unprofitable to overproduce (make more than your customers can buy).

Booth’s response is that Stu’s argument assumes a depreciating fiat currency. Stu talks about the “size” of the economy, which implies an econometric frame of mind whose objective is to grow GDP.

In an appreciating money regime (#Bitcoin), an overproducer has to lower prices to move product. This is OK, because the producer’s own costs are also falling in money terms. The result is that everyone is better off.

By the fiat, economic numbers (GDP) it looks like the economy is shrinking. The reality is an age of abundance.