My Diary

The price of tomorrow by Jeff Booth

I watched Jeff Booth’s interview on Real Vision and since then this book was on the list. Preston Pysh, who I follow and consider one of my inspiration, budge me on Twitter to prioritise this book over anything else that I was reading. And, he was right!

This is one of the books which challenges your core belief system and what is considered as common knowledge. I rank this book in the same league as Zero to One by Blake Masters and Peter Thiel. The books explores a lot of topics and pitches why technology will result in deflation and how we need to be prepared for it.

This is a must read book to understand how technology will bring abundance and as a result will lead to deflation. Below are a few key insights/learnings from the book.

  • Our economic systems were not built for a world driven by technology where prices keep falling. They were built for a pre-technology era when labour and capital were inextricably linked, an era that counted on growth and inflation, an era where we made money from scarcity and inefficiency. That era is over. But we keep on pretending that those economic systems still work.
  • The only thing driving growth in the world today is easy credit, which is being created at a pace that is hard to comprehend.
  • When we use technology, there is an exponential effect in its output or power relative to its price. We get far greater benefit and the price continues to fall. The abundance that it brings to our lives is incredible and it is all around us.
  • With inflation, holders of assets win, since the dollars in the future are worth less and it would, therefore, take more dollars to buy assets at a later date—like my parents and their first house. With deflation, holders of currency are the winners, since their dollars can buy more goods and services in the future than they could today.

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