Demographics
Hundreds of years of history demonstrates, that the single largest component of economic growth is population growth. Yes, technological advances contribute to increased productivity resulting in rising levels of wealth and of course artificial increases in wealth via inflation of fiat currencies give the added appearance of economic growth. Given that Covid and the lockdowns have, at least temporarily, reduced the fertility rate, population growth is due to slow markedly. The real “killer” in this equation are the poisonous vaccines. We know they are affecting fertility in women (possibily in men as well). This is going to drop the fertility rate sharply and possibly for an entire generation. That almost guarantees a depression steeper than anything seen in centuries. (possibly only the bubonic plague would be comparable) I would expect that authorities will try to offset the economic effects by printing even more money than they already are. Declining economic growth combined with increasing levels of inflation, a recipe for disaster. (Have a nice weekend)
tech advances are deflationary.
During the industrial revolution, deflation was the norm.
We should embrace deflation … goods and services get cheaper.
But then governments go broke. Which is probably a good thing anyway.
Understand your point, but not so. The only time you can have deflation is when the reserve currency is backed by gold.(As it was during the industrial revolution) and thruout history for that matter). As I have stated here and on other forums and in comments to those who keep repeating the false mantra about deflation, YOU CANNOT HAVE DEFLATION WHEN YOUR CURRENCY ISN’T BACKED BY GOLD (or Silver) This is an unprecedented time and the reason why “this time is different”! I don’t know of anytime where a fiat currency that wasn’t backed by real money(gold and or silver) has ever survived being inflated away into oblivion.
It depends on the denominator.
If the denominator is the Fed balance sheet, which has expanded on average 15% pa, we have deflation in all asset classes for the last 10 years, except for only two assets:
1. Bitcoin
2. Nasdaq
Don’t know of any definition in economics of inflation(deflation) being of financial assets. I believe it reflects the prices of goods and services that most consumers consume to live. Prices of financial assets going up and down reflect investment and or speculation.