John Griswold
1 min readJul 17, 2021

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No, the evidence contradicting this idea is legion. If you had said "all things in a closed system trend towards disorder" then the statement would be accurate, and of course irrelevant to the topic of discussion. Neither our economy, our nation, or our planet are closed systems. The planet gets a daily influx of solar energy, the nation and economy get a constant influx of labor, enterprise and natural resources.

This is key to understanding the effects of inflation and deflation. Deflation is the enemy of both economic growth and economic vitality. Deflation in an "asset" causes holders of that asset to hold on tighter, to keep possession of the asset rather than putting it into commerce. While it's almost certain that eternal economic growth is a path to disaster, economic vitality is crucial to the provision of sufficient resources to members of society.

Currencies are designed to be constantly traded. When they become deflationary this function is harmed, as is the economy they are designed to serve. A constant low rate of inflation is a hedge, a protection against the currency deflation that could cause an economy to stagnate.

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John Griswold
John Griswold

Written by John Griswold

Master carpenter, watercolor artist and beat up old jock…owned by Black Lab Bo who considers two tennis balls a minimum mouthful

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