Prior to the 1930s, the inflation-deflation cycle showed a clear heartbeat pattern with prices rising and falling regularly, but after the 1930s, deflation largely disappeared and the pattern became predominantly inflationary, likely because of sticky wages from the introduction of minimum wage, welfare, and Social Security.
causalpending
Speaker
George GammonEvidence Quote
“prior to the 1930s...inflation deflation inflation deflation...once you get to the 1930s you pretty much have almost zero uh deflation...minimum wage...welfare and social security...a floor on the price of wages therefore a business can't...if the revenues go down instead of staying in business because wages going down now they just go bust”
Source
Jim Grant (Interest Rate Cycles, Are Today's Events Unprecedented? Price Signals, Economic History)— George GammonCreated: 8/11/2026, 8:07:54 AM
My Notes
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