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There are two kinds of austerity: money austerity and resource austerity.

Resource austerity would mean to take into account the limits to growth arguments and pay the true cost of resource luxuries. Resource austerity also means more more room for jobs. It also means money inflation.

Money austerity comes from believing money is a real thing that is neither created nor destroyed, only conserved, instead of a consensual token. It is ridiculous that there are both human and physical resources (I'm referring to plant, not raw materials) going idle because of lack of fiat tokens. But that is the situation, and attemting to economize on tokens is only going to result in greater capacity underutilisation. The hoarders of tokens will keep their hoard and may even succeed in safeguarding the exchange value of their hoard, but not only will resource overuse not be checked, but there will be an economic slump. But at least there won't be inflation.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Migeru (migeru at eurotrib dot com) on Sun Jun 6th, 2010 at 10:39:56 AM EST
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