Why the Economy Is Slow: A Never-Ending Story

Why do we not grow?

1. We think printing money causes inflation.

2. We think we need credit for growth.

3. Our policies restrict the growth of money and encourage the use of credit.

4. As a result, we have come to use credit for money.

5. Policy does not fight inflation by getting people to reduce their debt, so debt accumulates.

6. The increasing reliance on credit drives up embedded interest costs.

7. The cost of using money comes to compete with wages and profit.

8. Low wages and low profit lead to inadequate growth.

9. We think more access to more credit will solve the growth problem.

10. Greater reliance on credit increases the cost of using money and puts further downward pressure on wages and profit.

11. Go to step 8.