3 ms·

> The 2% per annum is deliberate and useful; it means you have economic incentive to put your wealth to work on creating things-- new businesses, technology, pu

> The 2% per annum is deliberate and useful; it means you have economic incentive to put your wealth to work on creating things-- new businesses, technology, public infrastructure-- by investing it, rather than passively sitting on it. I think that's what the child poster meant by bug. It's artificial and still: Why? Mankind came to what it is 99.9% of time without artificial devaluation.

TomVDB 8y ago
> Mankind came to what it is 99.9% of time without artificial devaluation. Mankind came to what it is 99.999% of time without antibiotics too. Arguments like this are rarely constructive.
bildung 8y ago
> Mankind came to what it is 99.9% of time without artificial devaluation. Because productivity was practically constant for this 99.9% of human history. Therefore the monetary base could be practically constant, too. With the industrial revolution, growth became obviously exponential. Have a look at the following graph (nominal GDP): http://3.bp.blogspot.com/_VO-2HbQsbSU/S9BbLF6MxBI/AAAAAAAAARw/ctyCSuzVJdA/s1600/PubDebtGDP.bmp http://3.bp.blogspot.com/_VO-2HbQsbSU/S9BbLF6MxBI/AAAAAAAAAR... Or this one (real gdp): https://ourworldindata.org/uploads/2013/11/GDP-per-capita-in-the-uk-since-1270.png https://ourworldindata.org/uploads/2013/11/GDP-per-capita-in... Inflation means the value of money stays coupled to the changes in GDP, just as in the millenia you apparently value for exactly this constant money <> gdp relationship.
dTal 8y ago
No, we had natural devaluation. Most resources, hoarded away, will spoil. Everything has an expiry date, even social capital - do me a favour today, and I might return the favour tomorrow. But by next year I'll have forgotten about it. It makes sense, really. Why should finding a old penny under the floorboards, nearly worthless when it was minted, make you rich?

TomVDB 8y ago

> Mankind came to what it is 99.9% of time without artificial devaluation. Mankind came to what it is 99.999% of time without antibiotics too. Arguments like this are rarely constructive.

bildung 8y ago

> Mankind came to what it is 99.9% of time without artificial devaluation. Because productivity was practically constant for this 99.9% of human history. Therefore the monetary base could be practically constant, too. With the industrial revolution, growth became obviously exponential. Have a look at the following graph (nominal GDP): http://3.bp.blogspot.com/_VO-2HbQsbSU/S9BbLF6MxBI/AAAAAAAAARw/ctyCSuzVJdA/s1600/PubDebtGDP.bmp http://3.bp.blogspot.com/_VO-2HbQsbSU/S9BbLF6MxBI/AAAAAAAAAR... Or this one (real gdp): https://ourworldindata.org/uploads/2013/11/GDP-per-capita-in-the-uk-since-1270.png https://ourworldindata.org/uploads/2013/11/GDP-per-capita-in... Inflation means the value of money stays coupled to the changes in GDP, just as in the millenia you apparently value for exactly this constant money <> gdp relationship.

dTal 8y ago

No, we had natural devaluation. Most resources, hoarded away, will spoil. Everything has an expiry date, even social capital - do me a favour today, and I might return the favour tomorrow. But by next year I'll have forgotten about it. It makes sense, really. Why should finding a old penny under the floorboards, nearly worthless when it was minted, make you rich?