Funding the liability is an associative property that has emergent value.
The EU reports “negative inflation,” for example. In other words, deflation! If there ever was an emergent value, deflation (the thing that causes famine and war) is definitely it (and we are going to find out if pulling it out over a longer period of time, in the form of a “long-tail recovery,” and describing it as “negative inflation,” is the lesser evil).
With all the hue and cry over austerity measures, bail-ins, and negative interest rates, a confirmed deflationary trend supports the hypothesis that these measures are demand-destructive.
(Demand-destruction is not exactly a future to believe in. Essentially, it is Reaganomics–what Rubio and Cruz propose, driving people into economic desperation, driving wages and salaries down so that, like Reagan discovered, we have big demand for budget deficits–sovereign debt, with the full faith and credit, the assured protection, of the Federal Government.)
Falling prices are good if it increases the average income, but that is not what deflation measures.
Deflation measures falling median income–the creeping, economic trend of income inequality that Bernie Sanders says needs to be stopped, and reversed, in priority. We now have the opportunity to vote FOR something really positive. It is time to take advantage of it, existing right here and now, to everybody’s benefit, beyond excess, legitimately on demand!
Supporting the Associative Property On Demand
What is the causal identity associated with the EU’s deflationary trend?
Since causal identity infers liability, there is a tendency to focus on the effects. Differing attributions associate with the effects to create a value that associates with the attribution. Cause and effect then gets twisted and turned. This is what makes political-economic analyses so difficult, complicated, and contentious. Even when there is a careful program with clearly evaluative measures, there is still plenty of room for causal interpretations to transact an ambiguation. If it reduces to a matter of belief, then your philosophy of the way it should be is as valid as mine, and we both consider it supported by observable effects, existing on demand (determined by the future you believe in).
Negative inflation in the EU, for example, suggests that austerity measures are deflationary. However, there is the measurable reemergence of the Celtic Tiger.
Ireland is experiencing high rates of growth following the Great Recession. Despite being under the same austerity measures as other EU countries using international emergency funding, the Celtic Tiger appears to be roaring again.
Maintaining the associative property, consider that the Tiger, since 2009, has been in an export-driven recovery, but it’s not because wages and salaries have been deflated by accepting international bail-out funds (Reaganomics being the future to believe in). Ireland’s government has spent a lot of time and money building its labor force and infrastructure to export services to other EU members now struggling with austerity. The effect is to compensate for the loss of manufacturing jobs due to rising wages and salaries.
The Celtic Tiger model is what Bernie Sanders intends to do. That’s why economists like Robert Reich endorse him (and why Reaganomics advocates, like Bill O’Reilly, say they will move to Ireland if he is elected).
Supporting the austerity model (especially with the lower marginal tax rate Reaganites want) is deflationary, like we see in the EU. There is a perfectly believable alternative, however, existing on demand.
Vote for Bernie Sanders!
(And please, Mr. O’Reilly, move to Ireland!)