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Inflation occurs when the US government adds around $10 billion of money to the market every year though (they print money to replace existing / lost currency,
by skizm 10y ago
Inflation occurs when the US government adds around $10 billion of money to the market every year though (they print money to replace existing / lost currency, but always over produce). The money gets "consumed" but the value of each dollar goes down. And that's just with $10 billion.
That point aside, my original point was that just because the 6 richest people have paper value of more than half the planet doesn't mean there are enough resources to keep everyone alive just because they are born. (which is ideal in a theoretical world obviously)
- maxerickson 10y agoThe hundreds of billions in deficit spending and easy money at the Fed have a much greater impact on inflation than the amount of cash in circulation (if the nominal size of the economy grows, you'd expect to need more cash...).
- pg314 10y ago> Inflation occurs when the US government adds around $10 billion of money to the market every year though (they print money to replace existing / lost currency, but always over produce). The money gets "consumed" but the value of each dollar goes down. That's wrong. Inflation is more complicated than that. If it were that simple, Japan would not have had the years of sustained deflation.
- omarchowdhury 10y agoSource for the $10 billion stat? Seems insanely low. Only 0.0083% of the total USD in circulation.