In The Price of Tomorrow: Why Deflation is the Key to an Abundant Future, Jeff Booth, a seasoned tech entrepreneur, delivers a compelling case for why technology is driving an unstoppable wave of deflation that will reshape our economy. Drawing on his experience founding BuildDirect and navigating decades of technological disruption, Booth argues that our debt-heavy, inflation-based economic system is fundamentally misaligned with the deflationary force of technology. He warns of widespread unemployment and economic instability unless we embrace deflation, rethink work, and adopt solutions like Bitcoin. Here’s a breakdown of Booth’s provocative thesis and its implications for our future.
Read the book: The Price of Tomorrow by Jeff Booth
The Deflationary Power of Technology
Booth begins with a core premise: technology is inherently deflationary, driving down the cost of goods and services by increasing efficiency. From smartphones to AI, technological advancements deliver more value for less cost—think of how Zoom replaced costly long-distance calls or how Amazon slashed retail prices. He cites staggering data: between 2000 and 2018, global debt surged from $62 trillion to $247 trillion to achieve just $46 trillion in GDP growth, a diminishing return fueled by easy credit. This artificial growth masks the reality that technology should be making life cheaper, yet housing, healthcare, and education costs keep rising due to debt-driven inflation.
Booth challenges the narrative that inflation is inevitable. Central banks, through quantitative easing and low interest rates, print money to prop up an outdated system, creating asset bubbles and inequality. Meanwhile, technology’s deflationary force—evident in industries like retail and transportation—clashes with this approach, threatening economic stability. As Booth puts it, “On one side, we have this incredible deflationary force driven by technology, and on the other side, we have a force trying to stop it. That force is a money printing machine.”
The Debt Trap and Economic Fragility
A central concern in The Price of Tomorrow is the global economy’s reliance on unsustainable debt. Booth illustrates this with the U.S.-China trade dynamic: the U.S., with 70% of GDP from consumer spending, borrows heavily to fuel consumption, while China, with lower wages and export-driven growth, buys U.S. debt to keep the cycle going. This “vendor financing” keeps interest rates low but widens trade deficits and inflates asset prices. In 2018, the U.S. budget deficit hit $800 billion, exacerbated by tax cuts that boosted consumption but deepened debt.
Booth references Ray Dalio’s four levers to escape debt: austerity, debt restructuring, wealth redistribution, or money printing. Central banks favor the latter, but Booth argues this is futile in a deflationary world, leading to instability and polarization. He warns that combining debt with deflation is toxic, as borrowers struggle to repay fixed debts with shrinking incomes.
Creative Destruction and Network Effects
Booth highlights how technology’s “creative destruction” disrupts traditional industries, citing Amazon’s dominance over retailers like Walmart and Home Depot. Platforms like Amazon, Facebook, and Airbnb leverage network effects—where value grows exponentially with users—to create winner-take-all markets. These platforms aggregate supply (e.g., videos on YouTube, homes on Airbnb) and let it compete, driving prices down and concentrating power. Unlike past monopolies that raised prices, today’s tech giants offer better services at lower costs, making them hard to regulate.
This deflationary trend, while beneficial for consumers, destroys jobs. Booth predicts widespread technological unemployment as AI and automation outperform humans in skilled roles. He cites Mark Carney’s comparison of AI to electricity but argues AI’s exponential intelligence surpasses past innovations, amplifying its disruptive impact.
Bitcoin: A Deflationary Solution
Booth sees Bitcoin as a critical piece of the solution, aligning with technology’s deflationary nature. Unlike fiat currencies devalued by printing, Bitcoin’s fixed supply of 21 million coins ensures absolute scarcity, making it an “incorruptible global currency” for a deflationary economy. He argues that an inflationary monetary system, reliant on debt and money printing, is fragile and unsustainable. Bitcoin, by contrast, allows prices to naturally fall as technology reduces costs, enhancing purchasing power.
Recent discussions on X echo this sentiment, with users like @MasonFoard noting that Bitcoin’s neutrality complements technology-driven deflation, unlike manipulative fiat systems. Booth’s advocacy for Bitcoin isn’t utopian; he acknowledges political resistance, as governments prioritize short-term stability over long-term reform.
A Call to Action
Booth doesn’t claim to have all the answers but urges a global conversation to rethink our economic paradigm. He proposes letting deflation run its course, allowing technology to lower costs and reimagining work in a job-scarce world. This could mean universal basic income, new education models, or decentralized systems enabled by Bitcoin. He warns that resisting deflation through more debt will widen inequality and fuel unrest, as seen in growing global polarization.
The book’s strength lies in its accessible style, avoiding jargon to make complex ideas digestible. Readers on Amazon praise its clarity and prescience, though some question whether technology’s deflationary force can outpace inflationary policies like Federal Reserve money printing. Booth’s call to action resonates: “We need to build a new framework for our local and global economies, and soon; we need to accept deflation and embrace the abundance it can bring.”
Reflections
The Price of Tomorrow is a thought-provoking wake-up call, blending economics, technology, and policy to challenge conventional wisdom. Booth’s thesis—that technology-driven deflation is inevitable and Bitcoin offers a path forward—is bold and polarizing. While skeptics may doubt deflation’s dominance given persistent inflation, his data-driven arguments and real-world examples, like Amazon’s rise, make a strong case. For anyone interested in economics, technology, or Bitcoin’s role in our future, this book is a must-read. It’s not just about tomorrow’s price—it’s about reimagining abundance in a world transformed by technology.