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Modern capitalism depends on fiat currency and investment from those with capital. Currency loses value over time to inflation, so investors are always trying t

Modern capitalism depends on fiat currency and investment from those with capital. Currency loses value over time to inflation, so investors are always trying to get better returns against a baseline. Even at 3% per year, consumption has to double every 16 years if investors only want to break even. So, it's not "nice" if the economy grows, it's an absolute requirement to keep investors interested.

nicoffeine 5y ago
For the downvoters: "The single most important question in investing this year is whether the rampant inflation of the moment is temporary, as the Federal Reserve believes, or marks a historic shift. I argued last week that we are on the cusp of a major change and long-run inflation is now more likely." https://www.wsj.com/articles/if-inflation-is-coming-here-is-what-to-do-about-it-11620694235 https://www.wsj.com/articles/if-inflation-is-coming-here-is-...
- betwixthewires 5y ago
  Why have I been seeing so much attention given to voting in threads on HN these days? Is there an influx from Reddit or something by a bunch of people who didn't take the time to learn the etiquette here? We speak only when there's something to be said, vote only based on the quality of the comment and move on. You don't need to address downvoters. If you had something to address them with it should've been in your original comment, then maybe they wouldn't have downvoted.
  - nicoffeine 5y ago
    > Be kind. Don't be snarky. Have curious conversation; don't cross-examine. Please don't fulminate. Please don't sneer, including at the rest of the community.
    - betwixthewires 5y ago
      What in particular is this in response to?
      - nicoffeine 5y ago
        If you’re going to arbitrate etiquette, lead by example. Following part of it when it suits you defeats the point of bringing it up.
        betwixthewires 5y ago
        OK, but what in particular did I say that you felt the need to quote rules?
imtringued 5y ago
It isn't. People keep credit (aka bank money) in their bank accounts even at negative nominal interest rates. The problem is the insistence on positive interest because of moral attachments to the idea of frugality. Central banks target positive inflation because of the inability to cut interest rates below zero.
gruez 5y ago
>Currency loses value over time to inflation, so investors are always trying to get better returns against a baseline. Even at 3% per year, consumption has to double every 16 years if investors only want to break even. The math does not check out. 1.03^16 = 1.6, not 2 like you'd expect if it was "double". Moreover, inflation only necessitates that the money supply grow infinitely, not economic activity and/or resources. If we doubled the bank balance of everyone overnight, and the price of everything doubled, that's not really "growth" in any meaningful sense.

nicoffeine 5y ago

For the downvoters: "The single most important question in investing this year is whether the rampant inflation of the moment is temporary, as the Federal Reserve believes, or marks a historic shift. I argued last week that we are on the cusp of a major change and long-run inflation is now more likely." https://www.wsj.com/articles/if-inflation-is-coming-here-is-what-to-do-about-it-11620694235 https://www.wsj.com/articles/if-inflation-is-coming-here-is-...

betwixthewires 5y ago
Why have I been seeing so much attention given to voting in threads on HN these days? Is there an influx from Reddit or something by a bunch of people who didn't take the time to learn the etiquette here? We speak only when there's something to be said, vote only based on the quality of the comment and move on. You don't need to address downvoters. If you had something to address them with it should've been in your original comment, then maybe they wouldn't have downvoted.
- nicoffeine 5y ago
  > Be kind. Don't be snarky. Have curious conversation; don't cross-examine. Please don't fulminate. Please don't sneer, including at the rest of the community.
  - betwixthewires 5y ago
    What in particular is this in response to?
    - nicoffeine 5y ago
      If you’re going to arbitrate etiquette, lead by example. Following part of it when it suits you defeats the point of bringing it up.
      - betwixthewires 5y ago
        OK, but what in particular did I say that you felt the need to quote rules?

imtringued 5y ago

It isn't. People keep credit (aka bank money) in their bank accounts even at negative nominal interest rates. The problem is the insistence on positive interest because of moral attachments to the idea of frugality. Central banks target positive inflation because of the inability to cut interest rates below zero.

gruez 5y ago

>Currency loses value over time to inflation, so investors are always trying to get better returns against a baseline. Even at 3% per year, consumption has to double every 16 years if investors only want to break even. The math does not check out. 1.03^16 = 1.6, not 2 like you'd expect if it was "double". Moreover, inflation only necessitates that the money supply grow infinitely, not economic activity and/or resources. If we doubled the bank balance of everyone overnight, and the price of everything doubled, that's not really "growth" in any meaningful sense.