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And without savings, new job creation becomes impossible. People consume whatever they produce as fast as they produce it,<ref>or "[[prodigal]]ity," as [[Adam Smith]] referred to it.</ref> because money becomes worthless if you hold onto it (like a game of Hot Potato, or an ice cream cone melting in your hand). This is much of the theory behind [[Keynesian economics]] and [[stimulus]] spending.
And without savings, new job creation becomes impossible. People consume whatever they produce as fast as they produce it,<ref>or "[[prodigal]]ity," as [[Adam Smith]] referred to it.</ref> because money becomes worthless if you hold onto it (like a game of Hot Potato, or an ice cream cone melting in your hand). This is much of the theory behind [[Keynesian economics]] and [[stimulus]] spending.
While goods are still consumed as fast as they are produced, people with money - workers and those on the entitlement dole - recieve value for their money at that days prices; however, no one ever advances or realizes a gain. Those without money - the unemployed and those without access to the government dole - suffer incredible hardship. This leads to demand for more government socialist spending in a society that already is becoming [[progressive]]ly" impoverished.
One sign of '''stagflation''' is when bond yields decrease while the value of gold increases, as is occurring in mid-2011.
One sign of '''stagflation''' is when bond yields decrease while the value of gold increases, as is occurring in mid-2011.