Re: 1929 deja vu

From: Michael S. Lorrey (
Date: Tue Apr 25 2000 - 11:39:54 MDT

John Clark wrote:

> Michael S. Lorrey <> Wrote:
> >excessive productivity growth
> Is that anything like excessive health, excessive justice, or excessive happiness?

When its not foreseen (as Moore's Law helps us to do), then excessive productivity
growth causes overcapacity, overstocked inventories, and then a slowdown in production
and a layoff of employees, which reduces purchasing, which further increases
inventories, etc...prices fall, commodity markets crash, people lose money and try to
liquidate assets to cover losses, causing further price erosion, etc...

Deflation is ok if it is foreseen and can be managed.

Excessive health? Yes, you get over population. Excessive justice? For who?
Excessive happiness? Yes of course. People that are too satisfied are not motivated to
further growth...

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