Posted 3 years ago on Oct. 12, 2011, 7:30 p.m. EST by junglylion
This content is user submitted and not an official statement
Q: When will tthe appreciation of money occur? A: supply excess demand, the costs reduced, & etc.
Q: what will eventually happen when the appreciation of money occurred A: It depends on whether the producer/manager is enlightened.
1) If not enlightened, they will artificially control the price, or reduce the scale of production, & etc. They will never regard the appreciation of money a good thing, becuase they are primarily consider maximizing their own profits. Eventually, the richer will be protected and the poorer will be always under slavery....
2) If enlightened, they will say "it is really a wonderful thing!". What does the "supply excess demand" mean?---Doesn't it just mean that there is enough goods for all the people??? Isn't it what we are looking for??? So, the next step is not reduce the scale of production, or control the decrease of the price, but just continue to reduce the costs and improve the quality of the products. Eventually, we will all be rich!!!
So, you can see from such "naive" case analysis, how this key point make things totally different...