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Even when there is surplus income in an inflationary system it makes zero sense to save it outside of an inflation protected vehicle. It makes more sense to sim
by timtadh 14y ago
Even when there is surplus income in an inflationary system it makes zero sense to save it outside of an inflation protected vehicle. It makes more sense to simply spend it and borrow when you are short. This isn't "ill will." It is a natural consequence of inflation.
It only makes sense to save when there is enough income that the risk of losing savings from a) bad investment or b) inflation is lower than the expected payoff.
- white_devil 14y agoYou're right, it doesn't make sense to keep $BIG_BUCKS lying around on an account somewhere, losing value to inflation. It's a better idea to seek a return on that kind of money. But saving makes sense even just to prepare for unexpected expenses. We're not talking about hundreds of thousands of dollars here, in most cases, it's not even tens. Barely scraping by might be a bit of an alien concept to someone pulling in $250K/year from programming.