Comment: Natural Rate of Deflation

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Natural Rate of Deflation

There's a little known economics concept. It states that in an economy with a fixed money supply, there's a natural rate of deflation due to technological advancements. This effects everything. Yes, wages would fall slightly, but purchasing power would increase faster than the fall in wages. Remember that if lets people are needed to produce stuff, more people will simply be used in other areas. The economy is dynamic and self-correcting. Anti-automation advocates have been saying it woul displace humanity for 100's of years and none of it turned out to be true. If automation was so complete that there was no longer any jobs, it would mean that humanity had somehow managed to overcome scarcity. That would mean that we'd have virtually infinate wealth and I'm not sure that's possible.