3 ms·

USD is not backed by gold, mainly so the federal reserve can print money to control inflation. And, if necessary, indirectly tax the poor or financially illiter

• jasonwatkinspdx 5y ago
  Mild inflation generally aids the poor, as they have little to no savings and substantial debt. In the US the overwhelming majority of household's net worth is the equity in their home, which usually doesn't exceed the mortgage they still owe until rather late in life. A few people get lucky with hot real estate markets but to capture that you have to move into an undesirable cheaper area. Financial literacy is a different issue, but to be absolutely clear, the Fed is not in the business of exploiting the poor. That's a very cartoonish characterization.
  • vmception 5y ago
    I view the "inflation = stealth tax" to be hyperbole. Like, a comparison to something everyone hates for emphasis. But yes, inflation is not targeting any socioeconomic class, and its purpose is mainly to force people with a lot of money to not just park it somewhere and instead keep it moving in the economy. The bank's advertised rates sound like a cruel joke? Go invest it! That's the point, the central banks are playing a perpetual game of "inception" where they make all of your decisions to not put your money in a savings account to seem like your own original idea.