Customer Quote by Steve Hanke
“During the last two centuries, there have been many deflations throughout the world. Almost all of them have been good ones precipitated by technological innovation, rising productivity, global capital flows, and sustained economic growth. If farm mechanization cuts the price of wheat, you get a rising living standard. This is good.”
About This Quote
Source Essay: Economic Outlook, 2020
Technological progress drives deflation, which can raise living standards despite lower prices.
In simple terms: Tech causes deflation, raising standards.
Key Takeaway
Embrace innovation to improve welfare.
Themes
economics
technology
deflation
Mood
analytical
optimistic
Type
analytical
informative
When to use this quote
- policy making
- investment decisions
- consumer pricing
Key Concepts
growth theory
productivity
global trade
Questions to Reflect On
- How can societies mitigate deflation’s downsides?
- What policies support productive innovation?
A Different Perspective
Deflation can hurt debtors and cause unemployment.
