The Price of Tomorrow: Embracing Deflation for an Abundant Future

Jeff Booth's book, "The Price of Tomorrow: Why Deflation is the Key to an Abundant Future," challenges the prevailing economic model of inflation and explores the deflationary nature of technology. In this thought-provoking work, Booth argues that the exponential progress of technology is leading us towards a future of deflation, where goods and services become increasingly affordable.

The author highlights how the inflation we currently experience is artificially created through fiscal and monetary policies that rely on growing levels of debt. This manufactured growth disproportionately benefits the wealthy, leading to a significant concentration of wealth and the rise of populism.

Booth examines two key factors contributing to technology-driven deflation: the network effects of modern internet companies and the impact of artificial intelligence (AI) and automation. Internet giants leverage network effects to provide users with increasingly deflationary pricing, while AI and automation reduce costs and eliminate jobs, further driving down prices.

The book suggests that without intervention, the exponential growth of technology will continue to lower costs in various sectors such as platform companies, renewable energy production, and manufacturing. However, the current economic system relies on unsustainable debt increases to maintain inflation, leading to potential social and economic consequences.

Booth presents two potential paths for the future: a rise in inequality leading to conflict or a socialist approach involving wealth transfers through increased taxes on the wealthy and guaranteed basic income. However, neither of these paths addresses the root cause of the issue: technology-driven deflation.

The author proposes the need for a system reset, drawing parallels to the Bretton Woods agreement in 1944 that established trust and stable exchange rates. Booth envisions a world where deflation is embraced, and the potential for abundance is celebrated. As technology advances and prices decline, individuals can benefit from technology abundance without massive wealth transfers.

While acknowledging the reluctance of central banks to relinquish their control over the money supply, Booth suggests that alternative currencies, such as Bitcoin, may gain traction as trust erodes in dominant global currencies.

"The Price of Tomorrow" provides a compelling narrative on the unstoppable force of technology as a deflationary factor and offers insights into the current economic landscape and potential future scenarios. It encourages readers to consider the possibility of an abundant deflationary economy, sparking curiosity and further exploration of this transformative concept.