Post
Topic
Board Economics
Re: Some dilemma regarding investments and social welfare in an all bitcoin economy
by
Sicilian
on 26/05/2013, 14:01:56 UTC
5. Population n and amount of total goods and services x are growing.

This is the problem, the aggregation of all goods and services into a total which is growing.  People may still dig up raw minerals, but they want iphones.  Raw materials and raw labor become plentiful and cheap, while finished goods become scarce and expensive, as existing goods wear out, and population grows.  The growing price differential between raw goods and finished goods creates profit opportunities.