&quot;If the government bought wheat, for instance, to keep its price high and keep farmers employed; then burns it, this creates asset misallocations, though it is technically creating demand (this still happens to this day.)&quot;<p>This has been done successfully but without the burning. Just keep the price stables buying when the price fall and selling when the price goes up.<p>The idea of a buffer should be easy to understand here in HN. It can be done with all kind of things:
<a href="http:&#x2F;&#x2F;bilbo.economicoutlook.net&#x2F;blog&#x2F;?p=23578" rel="nofollow">http:&#x2F;&#x2F;bilbo.economicoutlook.net&#x2F;blog&#x2F;?p=23578</a><p>This &quot;creative destruction&quot; doesn&#x27;t look very rational, don&#x27;t you think? Is it not the goal of an economy to provide a good life for the human beings in that economy?<p>We should be able to do better than destroy capital in order to start again the game, but this time with less people owning more of the pie.