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That is because every good investment causes deflation, which in other words is increased economic efficiency. Capital must be misallocated in order to create i
by Geee 5y ago
That is because every good investment causes deflation, which in other words is increased economic efficiency. Capital must be misallocated in order to create inflation.
It's a huge misconception that inflation is good for the economy. What actually happens, is that the economy on the whole gets more inefficient and wealth concentrates.
- lamontcg 5y agoInflation does not cause wealth concentration. Inflation acts as a tax on hoarding money and reduces wealth concentration.
- Geee 5y agoWealthy don't hoard money. They hoard assets which appreciate with inflation, and they can get cheap debt against their assets. Inflation affects the poor the most, because their net worth is in cash, and they are dependent on their wage which doesn't increase hand in hand with asset prices.