patrick.net

http://www.bloomberg.com/news/2013-03-25/the-benefits-of-chronic-deflation.html

There is an important distinction between good deflation caused by excess supply and bad deflation created by deficient demand. Good deflation is the result of new technologies that power productivity and output as the economy grows rapidly and as supply outpaces demand. The bad kind stems from financial crises and deep recessions, which increase unemployment and depress demand below the level of supply. The Industrial Revolution began in the late 1700s.But in the U.S. it didnt achieve sufficient scope to drive the economy until after the Civil War.Value added in manufacturing and mining leaped.As bottle machines replaced glass blowers, the...