The dual nature of the dual form


At 40 times cheaper

What does the increase in wages in the non-inflationary mode? Whether in this case the rise in the price? And that means higher prices at the expense of the quality of products, which, in principle, supports another expression of its growth? Whether in this case to raise wages above the adjusted increased productivity? Obviously not. In contrast, prices in this case must fall. Decrease in inverse proportion to the growth of labor productivity. Indeed, productivity growth - a reduction and not an increase in prices. In fact, prices in the face of rising productivity (more - efficiency) are growing. Evidence that you like, the whole experience of more than one hundred times the postwar growth of consumer prices in almost all countries of the world.

In the above context, to determine the price would not have to rise. On the contrary, they are one of the witnesses to the effect of technological progress, the alpha and omega of which is to improve life in the form of cheaper the unit cost of production, should have been in these conditions cool down. On the example of data in the table feel, whatever it might turn out for the ordinary consumer.

Imagine that you are now able to acquire everything that is sold in 5.7 times less, and in all countries of the world put together, at least 40.6 times less, that is, respectively, 17.5 and 2.5 per cent, which were paid in 1970! They say not so increased prices, and quality. In the developed countries of 5.7 times in 30 years, while the average in the world - more than 40 times! In developing countries - even almost 1500 times cheaper. Evidence of improved quality in such monstrous scale can hardly be found anywhere else! So the formula of technological progress as a benefit, enhance and facilitate a person's life, anywhere, in any country of the world in the past have not worked. It turns out that technological progress is solved (apparently continues to solve today) in the life of other people, rather virtual than the declared real problem.

It works with a clear alternative or prices - then there is no technical progress, there is no effective economic or technological progress based on an efficient economy - then there is no inflationary rise in prices. Otherwise, as they say, is not given. Combinations such as prices rise, because the alleged salary grows even faster (which, incidentally, is not observed in reality) are not practical confirmation anywhere. That is why the stated alternative is correct. In this - the second case of manipulation of prices, wages and inflation (inflation) money. As a result, and in the (mainly inflation) and the other (additional, non-inflationary) event rates, and consequently, the amount of the value of goods, services and capital, grow faster their physical size. As a consequence - inflation of currency, the appearance of extra money or surrogate (derivatives), that is inflation. This is equivalent to the sale of two tickets in one place, the generation gap, rampant various manipulations.