Oddbean

My family was talking about inflation today... And how the federal reserve helps maintain a good economy for everyone. So I wrote this to them... The costs of goods and services should naturally decrease over time. A loaf of bread used to cost 25 cents, this was back when the wheat was sewn by hand, picked by hand, and ground by a wind or water. Wheat is now grown genetically modified and with insecticides to increase yield, mass-harvested with automatic combines, ground in large quantities in giant mills, baked in industrial ovens, and shipped mass quantities to your local supermarket for $5. Where did the cost savings go of doing things a more efficient way??Economies are naturally deflationary. #Inflation is both abnormal and theft.