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The idea of your money purchasing less is just a creature of the last 100 years. It doesn't have to be that way, but basically there has been annual share dilut
by vmception 5y ago
The idea of your money purchasing less is just a creature of the last 100 years. It doesn't have to be that way, but basically there has been annual share dilution from the US currency corporation for 100 years, it was chartered by Congress in 1913. In currency contexts this is called inflation. In all other asset classes it is called dilution.
- zarzavat 5y agoInflation is not the same as an increase in the money supply ("dilution" as you call it). Inflation defined as an increase in consumer prices. Consumer prices are affected by many factors other than the money supply, for example if oil prices rise then it tends to push up consumer prices and therefore inflation even if the money supply were static.
- imtringued 5y ago> It doesn't have to be that way, but basically there has been annual share dilution from the US currency corporation for 100 years, it was chartered by Congress in 1913. Sure, you can build a money system without inflation but that doesn't change that you still have to represent the loss of value via unemployment caused by saving money. i.e. you will need money with an expiration date, negative interest rate or wealth tax.
- vmception 5y agoI don't have a problem with the current reality. I am only pointing out that the current reality isn't fundamentally an absolute reality, just the features of the current epoch of currency which is only 100 years old. This thread was only about why the prices for a long time in the 19th century were not changing much across those 100 years, when in the 20th century things increase. I'm not here to opine about a future alternate system.