AMA | November 2024

Welcome to the November 2024 Ask Me Anything episode of Mindscape! These monthly excursions are funded by Patreon supporters (who are also the ones asking the questions). We take questions asked by Patreons, whittle them down to a more manageable number -- based primarily on whether I have anything interesting to say about them, not whether the questions themselves are good -- and sometimes group them together if they are about a similar topic. Enjoy!

AMA

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6 thoughts on “AMA | November 2024”

  1. Well done Sean, your introductory thoughts about the USA’s Presidential Elections were welcome. Creditably down-to-earth, balanced, thoughtful, and forthright. I realise that not everyone will will agree with you, but I do. I live in south-west England and the world is sailing through uncharted waters, politically, technologically, climatically and more. But the world is a better place, I think, for containing you and people like you. Thanks!

  2. Hi All, Just joined and hoping to submit a question for the next AMA. Is the best way to do this by using the email in the contacts tab or will there be an invite to submit nearer the next session?

    Many thanks

  3. Regarding ‘dirty cats’… I’ve seen articles that propose how living with a dog can be beneficial for one’s microbiome because they like to dig in the dirt, but nothing about cats, one way or another. In my opinion, any environment is enhanced by the presence of a cat or two.

  4. Sean I love you. I’ve heard you say multiple times on your podcast that a little inflation is good for economic growth. This statement is the economic equivalent of flat-earth theory. Not only is it wrong, it is incredibly easy to understand why it is wrong. Economic growth causes prices to fall. When supply goes up, prices go down. Economic growth is an increase in supply. The “economists” that make the argument that inflation is good for growth ignore the time value of money, which is the first concept you learn in finance 101. People don’t delay purchases. If they did, no one would every buy cell phones, TVs, computers, or anything, because they will always be cheaper in the future.

    Inflation doesn’t encourage investment, it encourages riskier investment. This is another concept you learn in finance 101, how inflation and deflation affect risk tolerance of investment. People invest because they want a return higher than the risk free rate. The risk free rate (savings interest rate) is determined by the supply of savings. As savings goes up, banks lower their interest rates. As the risk free rate falls, the risk tolerance of investment increases. As the risk tolerance of investment increases, the failure rate of those investments increases, causing a decrease in the supply of savings. As the supply of savings decreases, banks increase the risk free rate to encourage savings, and the cycle continues.

    The most important thing to understand is that savings represents real, tangible resources. When an investment fails, or we have a recession, it represents real, tangible resources that were lost and need to be reproduced. Causing inflation by printing money and thus falsely signaling to the market that the supply of savings is high, doesn’t magically create the real, tangible resources that were lost. It only causes the market to once again take on more risk, causing a high percentage of investments to fail.

    Imagine there were two competing versions of String Theory, and one version justified the existence of an infinite money printing machine. Once the money printer exists, how long will it take them to corrupt the majority of academia into saying that the money printer version of String Theory is the only correct theory? This is what has happened to the field of economics. Keynesian economists like to say that Austrian economists don’t do science. However, it is not possible to control variables and do macro-economic scientific experiments. The Keynesians are the anti-scientific ones, they do what Feynman called “cargo cult science”.

    I know you’ve had Bob Murphy on, but it seems he wasn’t able to convince you of these concepts. Please have others, such as Tom Woods, Peter Schiff, Ron Paul, or perhaps just read a few books on the topic. Again, I wrote this only because “inflation is good for growth” is flat-earth level absurd.

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