The Myth of Deflation with Jeff Booth

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“We have grown up in a different world, we’ve been programmed that deflation is a bad thing.”
— Jeff Booth

SHOW DESCRIPTION

Location: Zoom
Date: Friday, 19th June
Role: Entrepreneur & Author

In an inflationary Keynesian economic system, governments target low inflation to ensure a healthy economy and steady growth; however, inflation functions as a hidden tax on savings. Inflation also leads to a drop in purchasing power which drives the incentive to spend and invest rather than save.

Deflation, the opposite to inflation, is when the price of a basket of goods and services drops. Unlike inflation, deflation means the purchasing power of your savings increase over time and therefore, incentivises saving as opposed to spending.

Many traditional economists see deflation as dangerous as people will reduce spend with an expectation of products becoming cheaper, but this leads to an economy based on growth at any cost. Jeff Booth, author of The Price of Tomorrow: Why deflation is the Key to an Abundant Future presents an alternative argument.

In this interview, I talk to Jeff Booth, and we discuss the current economic & social situation, how an inflationary system has caused inequality & division and how Bitcoin & deflation can fix this.

TIMESTAMPS

00:03:50: Introductions 
00:04:21: Jeff’s book
00:06:46: Pace of technology advances
00:12:25: Market first principles
00:21:20: Observations after reading the book
00:24:56: Political perspective
00:30:33: Understanding Bitcoin
00:33:55: Defining inflation and deflation
00:40:14: Why capitalism is failing
00:48:41: Importance of technological advances
00:53:26: Future predictions
00:58:10: Human nature for greed
01:03:54: Government copy of Bitcoin
01:10:08: Societal breakdown
01:13:39: Bitcoin blind spots
01:18:46: Final comments

 

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SHOW NOTES

PodcastPeter McCormack