Wargamer08
Well-known member
The numbers and analysis I've seen showed the Great Depression correcting its self before FDR's socialist government intervention extended it.The economy needs a predictable money supply to run efficiently instead of having noisy loss from price fluctuations due to unplanned changes, and fiscal policy driven inflation is predictable while the savings-spending it disincentivizes is not.
If a Beenie Baby crazy kicked off in a thoroughly savings-based economy, you'd see an abrupt surge in the money supply resulting in wholly unanticipated inflation as that money makes its way around, suddenly spiking prices in ways nobody stockpiled the resources to pay for, cascading an extremely abnormal wealth redistribution.
If things enter a depression and literally everyone tightens their belts, then suddenly there is a drastic decline in the money supply, causing a general liquidity crisis from the sudden collapse in availability of the medium of exchange. It drew out the Great Depression, it had a big hand to play in how 2008 went, it's a very real problem.
You cut out the reason. Are you saying that it is wrong for somebody to increase their credit card spending after getting a raise? Because that is the basis from which I am defending a growing face-value sum of government debt, and this basis inverting is definitionally a contraction of the economy.
An increasing amount of national GPD is based on financialization games and service industry instead of resource extraction or the production of goods. Ever increasing borrowing, hedged by circular loaning is a dangerous game. While it let's you put up huge growth numbers and funnel wealth, at some point stuff has to be made.