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> The root of inflation is the printing of money It's always more complicated than that: Stop printing money? After a few years population will increase, the
by gwbas1c 4y ago
> The root of inflation is the printing of money
It's always more complicated than that:
Stop printing money? After a few years population will increase, the workforce will be larger, and there won't be enough money to go around. This will result in deflation. (And is supported by evidence of what happened when people used physical gold and silver as money. As population went up, and people stockpiled, deflation happened.)
In this case, part of the cause (in the US) is a smaller work force. Not only did people retire early at the beginning of the pandemic, the baby boomers are retiring. This means there's less workers to go around. The remaining workers can demand more money.
- deleted 4y ago[deleted]
- senectus1 4y agoI suspect that the "printing of money" statement is about unhinged printing of money, not "expansion of population" printing of money.
- imtringued 4y agoBut calling it excessive fiscal deficits and public debts would be both more accurate and actually address a real problem. The next step would be to then ask ourselves why the government has to constantly micromanage the economy, the answer has very little to do with the fact that inflation is a tax but rather because of structural problems in the economy. Governments always run a deficit for a fear of a recession worse than 2008. Why is government debt the only way to prevent a financial crisis? Why does it never get better but exponentially worse? If you just say money printing people turn their brains off and think it is as simple as political overspending.