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Yes, inflation incentivizes spending and/or investments, and (in moderation) that's generally a very good thing. The only other alternative that doesn't create
by lxgr 2y ago
Yes, inflation incentivizes spending and/or investments, and (in moderation) that's generally a very good thing.
The only other alternative that doesn't create incredibly bleak incentives for anyone that doesn't inherit wealth would be wealth and estate taxes, but good luck getting either passed or reformed.
- hot_gril 2y agoI don't see why the economy benefits long-term from people spending/investing only to get the money off their hands. Especially when it gets parked in things like gold and real estate just cause those supplies are sorta fixed.
- lxgr 2y agoAsset bubbles are indeed a sign of monetary and fiscal dysfunction, but so are hoarding and excessive wealth accumulation.
- hot_gril 2y agoWe have the combo right now, hoarding in assets. Inflation doesn't make rich people/corps spend more, just invest it differently.
- intended 2y agoInvestments move to stocks and equity. Real estate itself gets traded via proxy on the markets.