no third solution » Archive
What’s So Bad About Deflation?
In response to a Christian Science Monitor article on the perils of Deflation, Todd asks: The whole idea of “deflation” seems mostly nonsense to me. The only way to have true deflation is through a decrease in the money supply (like destroying money). I think when they say “deflation” they usually mean what I would call “net deflation,” taking into account not just the money supply but the supply, quality, and cost-to-make of goods as well. So while a debt-based currency will always be inflating due to new money being created with every new loan, there could be “net deflation” if the prices of products relative to the currency are decreasing. Does that make sense? Is that a weird interpretation? I am looking at you David Z. and FSK. A debt-based currency can certainly … Read entire article »
Filed under: Economic Fallacies, Economics Lessons
No Nation Ever Taxed Itself Into Prosperity, Either
The title is a reply to a recent comment on What is an Appropriate Tax Rate?, RG said (tongue-in-cheek) that “No state has ever reduced its taxes to prosper.” No? Ever hear of a little country called Ireland? I hear they’ve been doing pretty well lately. RG asked some serious and pointed questions, and like always, I try to respond to thoughtful comments. [Y]ou analyze NY, MA, and CA taxes on the basis of their income, sales, and corporate tax rates. However, you totally forgot City of NYC taxes for New York (you didn’t think I was using Syracuse as an example, did you?). Additionally, you forgot property taxes (which must be nonexistent where you live, or you wouldn’t have skipped them). The indisputable point is that the places that … Read entire article »
Filed under: Uncategorized
Comments on Comments #29
Here’s the latest edition of my responses to your comments. If you’ve been left out, it will probably appear in a forthcoming edition. +++ John at Blagnet followed up my post, with one of his own:Minarchist States and Basic Necessities, in which he dismantles arguments in favor of the holy triumvirate of minarchist libertarianism: the police, the courts, and national defense, often painted as basic necessities for a functioning society: [T]hose types of things are not the most basic needs; food, water, shelter, and medical care are. Fire departments, defense from outside attackers, and criminal investigation/prosecution/punishment systems are very important in any remotely large society, but they are secondary needs. People have to be living healthily before they even consider those things relevant. Good stuff, John. If you believe that a … Read entire article »
Filed under: American Politics, Anarchy!, Blog Reactions