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> Inflation benefits borrowers and penalizes lenders. That occurs after the primary beneficiaries of inflation (those who receive freshly printed dollars) take
by zhzjzjzbB 2y ago
> Inflation benefits borrowers and penalizes lenders.
That occurs after the primary beneficiaries of inflation (those who receive freshly printed dollars) take their cut.
> Final note, inflation helps encourage people to use their money and keep the economy moving.
This is just something people say. Programming equivalent of a factory class. Sure, it makes sense given Java’s language design, but when you realize the underlying design is awful and (at least for the modern US economy) out to hurt you, you look at things a little differently.
Inflation is just the rate which the population will accept without revolting. Constant inflation is not good nor needed, but we’d have to change a lot of our monetary policy in a way that results in a much smaller wealth gap (and military).
- drdec 2y ago>> Final note, inflation helps encourage people to use their money and keep the economy moving. > This is just something people say. Do you keep your savings under a mattress? Or do you put it someplace where the money can do work in the economy, like a bank account or bonds or stocks?