Economics 101: For real this time

As you know, I ' m what ' s called an econoclast -- I think standard economic theory with which freshmen are indoctrinated is bullshit. However, there are actual real facts about the economy that correspond to history and common sense. One is that over the long run -- and even almost always over the short run -- prices go up, and money is worth less and less. Here is the U.S. consumer price index since 2014:  The only time it ' s actually gone down since the Great Depression is the 2008 financial crisis, and even then you can barely see it. This chart ends before the recent moderation in inflation, but yes it did take a turn upward in 2020 which exceeded the average, but the slope wasn ' t actually that much higher than the entire period from 1984 to 2007. Note also the downturn in 1920, known as the " Forgotten Depression, " in which the stock market fell by 50%; then the lengthier downturn of the Great Depression in the 1930s; and finally the latest one that ended the George W. Bush presidency and doomed the McCain candidacy. In other words, when prices actually fall, it ' s bad. It only happens when the economy contracts sharply. It means businesses can ' t sell their goods and services, and they also stop investing. Maybe this won ' t always be true in the future, and the comparison is a little strained I ' ll admit since it was impossible to buy a computer or a jet liner in 1914 so it ' s not exactly clear what we ' re comparing. So here ' s part of a Delm...
Source: Stayin' Alive - Category: American Health Source Type: blogs