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Inflation is a necessary evil because paper is static and can't display real values. People who expect money to store value directly must be insane. I mean thi
by imtringued 4y ago
Inflation is a necessary evil because paper is static and can't display real values.
People who expect money to store value directly must be insane. I mean think about Roman empire currency being valid today. That is impossible. Money is only valuable within an economy that accepts it.
Money from the past is no longer in the economy that is used to be accepted in. Every time period could be considered its own economy. Storing value or carrying value into the future can only happen in the real world, not with money itself, which is just a managerial system.
In the real world, objects degrade, expire, require maintenance or constant energy inputs. Once humans are gone, nature will simply take over.
The disconnect between money and the real world must manifest itself as inflation.
- throw0101b 4y ago> Inflation is a necessary evil because paper is static and can't display real values. In some way (low) inflation is a feature and not bug: having money just sit around unproductively Scrooge McDuck-style is a waste of resources. Having cash (slowly) lose its value incentivizes its investment into productive assets and help move the economy around. Why does anyone expect / 'deserve' to earn returns on money that just sits around doing nothing?