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> Capital really does not live to stay in one place - it always wants to work. If you have 10 million dollars in the bank - you will be burning money just due t
by newjersey 11y ago
> Capital really does not live to stay in one place - it always wants to work. If you have 10 million dollars in the bank - you will be burning money just due to inflation.
Yeah, I've heard people explain it to me before. I don't fully understand it but I appreciate the fact that inflation is not always a bad thing and neither are taxes.
For example, if the people who owned all the land wanted to leave it fallow then they'd have to pay the tax on it somehow so they have an incentive to not leave it fallow.
I guess similarly with inflation and capital. You can leave your money doing nothing but there is a penalty for doing so (because inflation).