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Inflation skyrockets, because essential goods, services, housing, etc are NOT uniformly distributed. One can't print 50 million homes, even though a govt can di
by raincom 3y ago
Inflation skyrockets, because essential goods, services, housing, etc are NOT uniformly distributed. One can't print 50 million homes, even though a govt can distribute £x per month to all of its citizens. This is one of the reasons why the wealthy class don't keep their assets in nominal currencies (say, pounds, dollars), they would rather own assets (homes, businesses, land, shares of companies that produce goods, provide services, etc). As currency gets inflate, debased, printed on demand, borrowed (pick the right phrase depending on one's political inclinations, ideologies), the price of underlying assets (commodities, land, businesses, etc) also rise.
That's why non-uniform distribution of money doesn't have the same effect. If a country were to print £500 billion, and just hand out £500 billion to 10 wealthy people, it won't bring the same inflationary effects on housing/rentals, food, services and goods. However, if you print £10 trillions and distribute to everyone who makes more than £60K per annum, yes, housing and other stuff skyrockets.