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Contrary to what crypto currency enthusiasts believe, having inflation (most of the time) is the only feasible and sane way for an economy. Why ever do anythin
by bulbar 8mo ago
Contrary to what crypto currency enthusiasts believe, having inflation (most of the time) is the only feasible and sane way for an economy.
Why ever do anything at all with your money, ever, otherwise? Except for basic needs.
- gzread 8mo agoYes, but simple inflation isn't the problem. In a stable economy, we spend money as we received it, and take on loans for large purchases. In fact the economy was that way before. Now, things are too unsteady for that.
- mschuster91 8mo ago> In a stable economy, we spend money as we received it, and take on loans for large purchases. In fact the economy was that way before. You used to be able to save for most large purchases without going into debt. Even cars. But no, these days cars tend to be so goddamn expensive while at the same time being so low-margin products for the dealerships that even if you theoretically can pay in cash, the salespeople do their best to force you into some sort of debt because the kickback from that is the only way they make money. And practically, rents suck up so much of your income you can't save anyway.
- allreduce 8mo agoYeah, you would have to focus on buying things you actually need. Be able to save for and look forward towards a stable future. Don't get a new pocket computer every year because the software is not updated anymore. Use fewer subscription services? Maybe do away with the disposable vapes with lithium ion batteries in them.
- raincole 8mo agoSaving is not 'not doing anything at all with your money.' Saving is lending your money to a generally low risk debtor, called bank.
- globular-toast 8mo agoThat's not how banks work and hasn't been for decades.
- gzread 8mo agoWhat is a deposit if it's not a loan from you to the bank?
- globular-toast 8mo agoNothing. It's just a number in an account. It's what we call money basically. Banks don't profit from keeping your deposits, they profit from running the money supply which empowers them to create new money which they tax or, in other words, loans on which they charge interest. Go and try to withdraw something tangible with intrinsic value from a bank and you'll see they don't owe you anything at all. The most you'll get from them is paper, but even then you'll find it withdraw all your money in paper. I just opened an account for you in my own bank, in fact. You have one million credits. You are free to send and receive credits from anybody else with an account (which is nobody, unfortunately). I owe you nothing.
- gzread 8mo agoSo when you go to the bank teller and hand them $100 in cash, the bank doesn't receive $100 in cash?
- globular-toast 8mo agoWhen was the last time you went to the bank teller and handed them $100 in cash? I haven't done that in well over 20 years now. Notes and coins represent less than 3% of the money supply in countries like the UK and US. It's not what money is any more.
- gzread 8mo ago
- globular-toast 8mo ago> Why ever do anything at all with your money, ever, otherwise? Except for basic needs. Why indeed? If people are only buying stuff because they are afraid of their money being worth less in the future then those are things people don't even want, let alone need. Why is it a good thing for us to endlessly churn out stuff people don't even want?