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More money in people's pocket doesn't necessarily cause inflation in everything - for goods which supply can be increased at will(new factory etc), their long-t
by petra 11y ago
More money in people's pocket doesn't necessarily cause inflation in everything - for goods which supply can be increased at will(new factory etc), their long-term prices mostly depend on competition and manufacturing costs.
As for goods with inherently limited supply, like land, there would likely be some inflation - so in the end maybe you'll spend the same salary share on them. But the rest of your salary still carries more purchasing power than before.