How an Economy Grows and Why It Crashes


P R O S P E R I T Y   L O V E S   C O M P A N Y



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how an economy grows

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P R O S P E R I T Y   L O V E S   C O M P A N Y
People do not need to be persuaded to spend. Given that 
human demand is essentially endless, if people don’t want 
something there is likely a good reason. Either the product 
is no good or the consumer simply cannot afford to buy it. 
Either way, the act of deferring a purchase, or saving instead 
of spending, is made for rational reasons and tends to benefi t 
the economy as a whole. 
In fact, if consumers are not spending, the best way to spur 
demand is to allow prices to fall to more affordable levels. 
Sam Walton made billions with this simple concept. 
Despite all the exculpatory evidence, defl ation remains 
economic enemy number one. This is because infl ation (the 
opposite of defl ation), is every politician’s best friend. More 
about this later.




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