Re: Hiding a Recession
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toafk,
Not all prices increase, obviously. Technological progress and increasing productivity acts to offset the effects of monetary inflation on prices. That's what I'm saying; monetary inflation is "hidden" in lots of different places; some price inflation, but exported inflation to foreign reserves, increasing productivity, and temporal delay all act to mask the negative effects on consumers. Couple that with totally bogus CPI numbers . . .
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I think a lot of people don't realize just how much productivity has increased. In the past two decades, America (and the world) have gone through an explosion of innovation that is at least as significant as the industrial revolution. The information age has literally eliminated scarcity in a major, major part of the economy, and has performed miracles for small and big businesses, marketing, consumers, artists.
...yet somehow, our quality of life is not much better than it was before the internet. The wage slave, paycheck-to-paycheck paradigm still dominates. One has to wonder when the hell we're going to experience the economic "information revolution."
If you're wondering when the next great depression is going to come, we're already in it.
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