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Inflation is a form of taxation. A perverse one, because the poorer you are, the more you pay. And a lot of people on this forum still don't understand the val
by rmbyrro 5y ago
Inflation is a form of taxation. A perverse one, because the poorer you are, the more you pay.
And a lot of people on this forum still don't understand the value of adopting a non-inflationary currency which governments can't control supply.
- pessimizer 5y ago> the poorer you are, the more you pay. No, the more debt you own and the more savings you hold, the more you pay. Precisely the opposite. Wages rise under inflation.
- rmbyrro 5y agoThat's an illusion. Wages rise in real terms (discounting inflation) when productivity grows. There's a whole body of economics observations and literature on that and we should not ignore it. If you owe debt without inflation adjustment, that's a protection against inflation. But it requires reasonable amount of financial literacy to be smart and know exactly how and when to use debt as a hedge against inflation.