We Study Billionaires - The Investor’s Podcast Network Classic 21: Inflation or Deflation w/ Jeff Booth
Sep 4, 2022
In this engaging discussion, Jeff Booth, author of "The Price of Tomorrow" and tech entrepreneur, dives into the paradox of inflation and deflation. He argues that technology drives deflation, emphasizing the need for global monetary policies that embrace this shift. Booth critiques outdated economic strategies, highlighting how they exacerbate debt issues. He explores smart investing in tech-driven businesses and addresses the implications of low-interest rates for consumers. The conversation unveils a future shaped by innovation and profound financial changes.
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Inflationary Incentive Structure
- Governments using inflationary monetary policies for decades create a compounding incentive to invest.
- This leads to excessive debt and artificial asset price inflation, not real economic growth.
Technology Deflation vs. Monetary Inflation
- Technology is deflationary, offering more for less and displacing jobs.
- Current economic policies try to counter this with inflationary measures, creating a conflict.
Paper Folding Analogy
- The paper folding analogy illustrates how humans struggle to grasp exponential growth, like technology's.
- Technology's exponential deflation requires exponentially more debt to counter, creating instability.
