4 ms·

That's what is fueling the wage growth part of what I listed. All other things being equal, pumping money into the system doesn't cause tomato prices to rise b

• chiefalchemist 3y ago
  Well yes, it kinda does (happen by "magic"). Inflation is not about prices going up, it's about the value of your dollar going down. That is, what $10 used to buy can't buy that any more. Pump money into the system devalues what is presently in the system. Ok, maybe not magic, just Finance 101. Inflation, The Fed's 2% target type, is a systematic way of devaluing your buying power. Full stop. Do the math... in 35 yrs - half a lifetime - that cuts the value of your money *in half*. But 2% "inflation" sounds so sweet, easy and must be inevitable, doesn't it? btw, Inflation also helps increase income inequality. It helps move more to the top. Put another way, given the improvements in technology, productivity, efficiency, globalization, etc. why are prices going up at all? Who benefits from a system that runs complete counter to logic? I recently finished Lyn Alden's "Broken Money" and highly recommend it, especially the first four sections. https://www.lynalden.com/broken-money/ https://www.lynalden.com/broken-money/