[Info-vax] HP stopping VMS paper documentation ?

[glen herrmannsfeldt]

JF Mezei <jfmezei.spamnot at vaxination.ca> wrote:

(snip, I wrote)
>> Why is deflation so bad? 

> Bcause government have planned their finances based on assumption that
> value of GDP will keep on growing. Not only because that increases tax
> revenus, but also because the amount of money a goverment can borrow
> "comfortably" is based on raltionship between debts and GDP.

Washington state has no income tax, most state revenue coming from
the sales tax.  (About as high as California, which also has an
income tax.)  With the slower economy, state tax revenue sank even
faster than the economy.  Without deflation, government costs stay
the same or increase, but revenue decreases.

Free market depends on prices to follow supply and demand.
When you require prices and income to only increase, you
remove much of the feedback that makes free market work.

> If you look at China, it gets worse. In order to remain "stable", China
> needs a growth rate of about 10% otherwise the millions who flock to the
> cities will remain unemployed and that will create a lot of social
> striffe and might lead to a revolution à la Tianamen Square.

You mean like the occupy groups in many US cities?

-- glen