3 ms·
>key concept: inflation is a policy, not a rule of the universe The money supply has to grow with the growth of the economy and population, and it's better to
by idiot_stick 10y ago
>key concept: inflation is a policy, not a rule of the universe
The money supply has to grow with the growth of the economy and population, and it's better to have excesses than shortages. Or should we infinitely divide a single dollar for everyone to use?
- jmccaf 10y agoGrowth of economic activity and population is a collective choice we are making . We may eventually have less of economic activity, population, or both .
- idiot_stick 10y ago>Growth of economic activity and population is a collective choice Collective choice, not government mandate as the person to whom I replied suggested.
- dnautics 10y agoBegging your pardon, what evidence do you have to support your assertion that 'the money supply has to grow'? The way I think of it is this: The fruits of techonological innovation are supposed to be the rising tide that lifts all boats; the mechanism by which it does this is by lowering prices. When you have systematic inflation, you are robbing the poor of their opportunity to get ahead and giving it to those who have first access to cheap money (wall street, political cronies, i.e. big contractor)