Invigoration v.03

Today I think about inflation in the economy after watching/listening to Dr. Robert Shiller's interview with Nick Yekani on Youtube. 

Let's say there were 3 fruit producers in the economy, each of them has 10 fruits, apples, oranges, and pears. Each fruits worth the same, 1 could be exchanged with 1. One day there came another producer with dragon fruit into the economy, he also has 10 fruits. 

Without money they traded dragon fruit 1 to 1 also, but if there were money things became complicated. Let's say they had 30$ in the economy, each dollar represents 1 fruit. Upon the entering of the 4'th producer, each dollar would represent 1.3333 fruits. So to bring the economy to the way they would do it without the money 10$ should be added into the economy, inflation. 

In reality considerations are crazy more than that and the magnitude of the issue is crazy greater as well. I think what enables policy makers to stay above the water is the fractal nature of reality. If you've seen a fractal zoom video on Youtube you'd see that simplicity zoomed into complexities and complexities given enough processing power would zoom into simplicity. That processing power is/are the thinkers, the voyagers, and the adventurers of reality, the collection of their fruits of thoughts. 

So further into the issue I identified some issues (lol):

1. Would that mean that in a growing economy new amounts of money should always be generated?

2. What about the current situation where the economy contracted, are stimulus packages bad or the opposite of what should've been done?

The answer is sustainability right, if the economy is growing in a sustainable way then generating more amounts of money would be a balance that's conservative. If the growth of goods and services were out of the increases of detrimental illegal drugs lets say, then the generation of the amounts of money would only spread the sickness faster. 

(By sustainability I mean goodness, the inclination to keep on inclining forever Truthfully, the increase of abilities and the desires to live life all the time. True Justice). 

If the economy was contracting than the generation of stimulus packages would do:

1. People would have all the money to spend, then the desire, but they were told to stay at home. 

2. People with saved up cash would lose the ability to buy, they'd have to work, but they were told to stay at home. 

Basically all the energy but nowhere to channel it. (I'm not an expert, so all this is just my amateur opinion). 

But it works out because cash spent by people at low income were spent on basic necessities. Providers of basic necessities were not appreciated enough in the past so this is a balance. However you can't keep on going this way. In this situation the main heroes of the economy are the people at the COVID handling department, this is where all the goods and services were provided. I mean, the value of the goods and services were strategically concentrated there. 

Money invigorates the economy, it enables people to store values and close deals. Basically a really potent lubricator of search frictions in the economy*. What we want from all those energy is goodness, and it would be a huge miss of an opportunity not to channel those energy to the COVID handling department. 

*https://www.nobelprize.org/uploads/2018/06/advanced-economicsciences2010.pdf, market with search frictions by Peter Diamond, Dale Mortensen, and Christopher Pissarides winners of the nobel prize in economics 2010.

----------------------------------

So if you make the doctors and the nurses super rich in theory, naturally this is appropriate for the economy. Should be appropriate in so many different ways, what I could think of maybe:

1. People would listen to rich people, so when they were told to adopt a discipline there's a huge motivation to listen.

2. The shopping would be towards things that are appropriate, like psychologist and psychiatrists, massage therapists, properties, investment in health industries, investment in health researchs. 

3. The setbacks suffered by other sectors would be appropriate, for example tourism would lean towards catering to the rich people where all the businesses should came from. That would heal the economy nicely. 

4. Kids would aspire to be like them, or those who don't at least take aspects and qualities of these people to be elite, or highly regarded. Which is appropriate

5. ...