The media loves to tell us that everything is great and getting better. After all, the numbers are going up, right?
Well, sometimes numbers go up because there is actual growth and business expansion and standard of living improvements.
But sometimes numbers go up because there is an artificial propping-up of a particular industry (like real estate c. 2006-2007). Or sometimes there is simply an artificial increase in the money supply (or in easily-available credit) which means things are worth more dollars, which looks great on paper, but each dollar is worth less things, which isâ€¦ not so good. If that is the case, it would mean the standard of living and business growth are actually declining as a result.
So which is it? Continue reading