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by imtringued 235 days ago
The economy has the equivalent of a permanent memory leak. The Austrians decided to restrict the amount of memory (money). The economy crashed like a program running out of memory.

Keynes said, let the memory leak and just get more memory. This works until it doesn't, which is still a bigger win than losing multiple times.

Meanwhile Gesell said, if you want finite memory, then you must penalize memory consumption.

The amount of memory that an economy needs depends on the total number of transactions (total throughput) and how fast each processor is (sequential throughout).

Many slow processes means you need more processes in parallel, which means you need more memory.

Curiously, transactions are taxed by the government. This means that taxation minimisation implies delaying and minimizing transactions. There is an inherent bias towards being slow. It seems like tax policy is completely backwards in most countries.