Social and political consequence of high oil price.

joybetluck · Joined: 25 Aug 2007 Posts: 147

Inflation is not good. It means the money in your pocket buy less than yesterday.
If we are still ruled by Kings and Queens and the monarchy cheats you by diluting the content of gold and silver you would quite rightly be up in arms!
Growth in GDP is consider a good thing but any fool should know that continuous increase in the rate of growth is not only undesirable but impossible. The ideal condition could be zero growth. It means you are getting the same return today as yesterday for the same effort.
How is it that the governments of the world have been deluded into thinking that it is desirable to have positive growth, inflation rather than deflation?
Well we have for a long time been educated to think that growth is the result of increase productivity and inflation is the consequent of automatic adjustment of wealth and income from old money to the nouveau riche/entrepreneur which would result in a fairer and more dynamic society.
In fact the opposite is happening, the rich are getting richer and the poor are getting relatively poorer, leaving aside health and environmental issues.
If we dish out more of the same we would just have more inflation less real growth and more paper money for the wealthy.
The real economy not only has a systemic problem in delivering the goods but an ideological problem also. Unless we change course expect more of the same.

This reminds me of story of the tortoise verses the hare.

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