11 ms·
You can have inflation as a market result though. A lot of economic activity is adversarial and negative-sum. In the best case it's negative-sum but a multipl
by dropit_sphere 7y ago
You can have inflation as a market result though.
A lot of economic activity is adversarial and negative-sum. In the best case it's negative-sum but a multiplier of over 1, like police work. In the worst case it's value-destroying Uber vs Lyft wars, where companies spend on guns to fight each other with, which effort is forever lost for butter. Digital marketers are the soldiers in these battles, along with lawyers and security people.
In other words, just because everyone's rich doesn't mean there won't be someone willing to pay a lot of money to get more of the pie. Which leads to good scarcity (both from a smaller overall pie and the public having less access to it) and more money flying around, and boom, inflation.
We are in this situation today.