According to a lot of very serious people, the biggest challenge facing America is deflation. It’s not the number of jobs that are created every month or the number of people who apply for unemployment. The reason is that deflation can undermine the entire United States Economy just like it did in 1935 by reducing the willingness to invest. However, there are very few voices in America raising the alarms about the land mines ahead.
For the record, you can think of deflation as persistently low levels of inflation. While disinflation is simply about falling prices. Also another way to look at it, deflation is about structural challenges like techno-economic changes that recalibrate the cost of doing business. Deflation can lead Americans to refuse to buy new products because they believe that the prices of those same products will be lower in the near future.
On the other hand, acknowledging that America has a problem is only the first step. The next step is finding an American solution. No matter how you cut it. Austerity and will make it very difficult to simply throw money at very difficult problems. Fortunately, there are new sources of non-governmental money that can be used to address the effects of deflation. All that’s needed is a solution that harnesses the creative energy of the American people.
Given the new funding sources, makerspace development is the best solution for combating deflation in America. Makerspace development can bring the cost of producing prototypes down to a level that it can be executed by most middle class families willing to give up a trip to Disney. This means that people can launch their own creative endeavor without mortgaging their children’s future or for too many Americans today their grandchildren’s.