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Comment on We keep measuring everything's value with something that continuously loses value over time

Rikj000@discuss.tchncs.de ⁨6⁩ ⁨months⁩ ago

I guess a little inflation is good,
to prevent all money from ending up in a single party’s hands.

However that’s the only upside I could think of, other then that I fully agree with you.

Central banks “printing” money, through obligations and fractional banking, is blatant stealing from people who worked / saved in the past imo. Since it leads to inflation / devaluation of the currency.

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SwingingKoala@discuss.tchncs.de ⁨6⁩ ⁨months⁩ ago

to prevent all money from ending up in a single party’s hands.

Inflation encourages and amplifies wealth accumulation.

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- Cryophilia@lemmy.world ⁨6⁩ ⁨months⁩ ago
  It does the opposite lol it encourages investment
  
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graham1@lemmy.world ⁨6⁩ ⁨months⁩ ago

to prevent all money from ending up in a single party’s hands.

I beg to differ.

Example: suppose you own property, gold, a business, bonds, or something else with tangible value. When inflation causes cash to decrease in value, your assets are safe. They have intrinsic value.

Example: suppose you’re living a lifestyle where you can’t afford assets like that. Maybe even living paycheck to paycheck. You make the same money, and you can buy less with each paycheck. You can’t start buying assets when money keeps getting tighter.

I think it’s pretty simple to see inflation only hurts the have-nots, while others are protected by the value of their accumulated assets.

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- SwingingKoala@discuss.tchncs.de ⁨6⁩ ⁨months⁩ ago
  
  I think it’s pretty simple to see inflation only hurts the have-nots
  
  It hurts have-nots, but also medium to high earners who are forced to spend time to learn and to invest their money if they don’t want to lose wealth. That destroys their productivity or their free time which hurts society as a whole.
  
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EatATaco@lemm.ee ⁨6⁩ ⁨months⁩ ago
Throughout the 1800s, the us saw increasingly more severe and more frequent economic boom and bust cycles. This helps the wealthy as they are the ones who can buy up all the assets during the busts, and the common man gets fucked. This all culminated with the great depression. Its something like 20 recessions of 15% or more retractions between and 1930.

When the fed was given teeth to actually control the fractional reserve system., we’ve seen constant inflation, but the number and severity of economic recessions has gone way down.

We’ve seen 1 retraction over 15% since 1940. And that was because of COVID lockdowns.

This small, controlled inflation is great for the regular joe because it creates stability. And it was all going well until deregulation during the 80s.

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