this post was submitted on 29 Apr 2024
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Showerthoughts
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I never understood why inflation was a good thing. I understand why it happens. But I can't wrap my head around the value of your money going down being good.
Maybe so you actually spend it. But then it also keeps you from saving up for bigger purchases or having some emergency money tucked away.
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/regional banks "printing" money, through bonds and fractional banking, is blatant stealing from people who worked / saved in the past imo. Since it leads to inflation / devaluation of the currency.
I beg to differ.
Example: suppose you own property, gold, a business, 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.
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.