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> What about your idea regarding inflation as a way to avoid concentrations of wealth? (the idea I quoted and I replied to). That one is unsustainable. You're
by nuerow 5y ago
> What about your idea regarding inflation as a way to avoid concentrations of wealth? (the idea I quoted and I replied to). That one is unsustainable.
You're free to discuss the facts I've pointed out, instead of going off on a tangent with a non-sequitur regarding Argentina's hyperinflation. It's undeniable that stockpiling cash out of the economy has a deeply negative social, economic, and even fiscal impact on a nation. Inflation provides an incentive to actually put the money to use, and interest rates for the most conservative investments, like risk-free bonds, are then used to provide incentives to couple investments with economic cycles.
- argentinian 5y agoYou said that inflation and taxes are a way to mitigate or avoid concentrations of wealth. As a counterargument I said that rich people don't save in cash and that inflation damages the poor more than the rich, the world bank has evidence for that: https://openknowledge.worldbank.org/bitstream/handle/10986/18842/multi_page.pdf?sequence=1&isAllowed=y https://openknowledge.worldbank.org/bitstream/handle/10986/1... > Inflation provides an incentive to actually put the money to use, Inflation provides an incentive to get rid of the money that loses its value over time and instead change it for something else. This not only affects the rich, but also the poor. An effect is that it becomes more difficult for the poor to save and invest. The rich can handle inflation much better than the poor. I found another article that arguments about this https://mises.org/library/whats-so-scary-about-deflation https://mises.org/library/whats-so-scary-about-deflation