5 ms·
Inflation is the economics version of "software getting slower faster than hardware gets faster". In other words, the increased output is being diverted to area
by HPsquared 3y ago
Inflation is the economics version of "software getting slower faster than hardware gets faster". In other words, the increased output is being diverted to areas that don't produce value.
- csomar 3y agoI think people underestimated the value of Russia (they have a much lowe gdp, so they are small vs western countries) when in reality they do produce and provide a lot but at cut down prices because of corruption (or at the expense of their citizens)
- ajkdhcb2 3y agoMilton Friedman would say only the governments' money printing presses can cause it. A lot more simple, convincing and clearly logical to me...
- barelyauser 3y agoIt really is that simple, but certain people benefit from muddying the water and describing any increase in price as inflation.
- Dylan16807 3y agoNo it's not. Sometimes shifts in money flow happen alongside inflation, but inflation itself acts as a tax on savings and has basically no other long-term effect. In the long term inflation will make prices double and wages double and the effect is nothing. There's no actual difference between a $2 big mac and a $20 big mac. What you're describing is changes in productivity and spending and overhead, not inflation.