(Click to enlarge.)It is impossible for demand to increase to a level that meets the huge production potential. Accordingly, an earned salary level is always under the one achieved when the huge production potential was realized.
Specifically, the salary level will suddenly drop to a certain level the moment the huge production potential is attained or becomes effective. If demand further grows, the salary level will simply start to increase from that level again.
Accordingly, if domestic demand is increased through some financial measures, deflation cannot be truly conquered.
*** *** *** ***
Let's review the crude oil price argument in 2008:
F = a*A + b*B
F: Crude oil price
a: China-effect multiplier
A: China effect
b: Wall Street-effect multiplier
B: Wall Street effect
Many Anglo-Saxon economists claimed that b = 0, and
$140 = 28 x $5
However, truth is
$140 = (1 x $5) + (10 x $13.5)
*** *** *** ***
Tonight I saw a car with a licence plate number that read "88-88."
I saw a jet plane flying high, flickering in the dark night. It passed by Sirius or such shining keen and white. Then I looked up overhead to confirm the red star Mars.
Sirius is 83,000,000,000,000 km (8.8 light-years) far; Mars is 130,000,000 km (7.2 light-minutes) far; and the jet plane 8 km high. But, despite this million time difference and trillion time difference they look alike, namely a simple spot of light in the dark winter sky.
It is truly a miracle. Ancient people could not imagine such a difference between Sirius and Mars, very naturally.
Or, is it a limit of our visual sense? All the stars in the night sky look like a spot each of the same size, in addition to a jet plane's signaling light alternately red and white.
Yet, isn't it a little strange, since it is 8.8 light-years vs. 7.2 light-minutes vs. almost null light-seconds?
Maybe, it is Jesus Christ (as a man) vs. His followers vs. you!
(http://www.just-oldies.com/1969/this_magic_moment.htm
Wine is also red and white glittering, sometimes.)