Political Rants from the Right

One would think that a magazine like the U.S. News & World Report would have contributors and writers that are somewhat intelligent.  Then I came across this piece by Bonnie Erbe:  Deflation Might Just Be a Good Thing What kind of uneducated moron could ever come to that conclusion? She makes a fine attempt though:

…the economy has just endured spiraling inflation, most of which the government’s rigged economic figures (see prior blog entry) have failed to recognize. Real estate, in some areas, doubled and tripled in price, while gas prices doubled within a year. Food is up, rents are up, although gas is back down again, of course. But salaries never did rise quickly enough to catch up with other inflated costs. So, from where I stand, a bit of deflation is a good thing for the economy. It is not to be feared; it is to be welcomed.

Ummm - apparently she did not take in to consideration those confounding non-market driven factors that caused the spiraling inflation of gas, homes, food, etc. Nor did she take in to consideration that economic deflation also includes the devaluation of our currency.  Sure, the costs of goods might come back down - but - due to the deflation of the economy - the value of our dollar also goes down - which means - we’re still not getting any more for our dollar than before the deflation began.

Hey - moron - when deflation occurs - everyone starts holding on to their money.  Nobody is spending.  Our capitalist system relies on spending.  When spending stops - people start losing jobs!!! This part of the simple economic model of supply and demand.  When demand goes down, supplies go down and prices go up and vice versa.  Deflation knocks things out of equilibrium just as much as inflation.

Hey - U.S. News & World Report - don’t you guys hire people who actually have a clue because this lady sure doesn’t

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