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People who sit on piles of cash are always better rewarded than poorer people. Ever heard of "the rich gets richer"? This is a characteristic of capitalism, not
by mrb 13y ago
People who sit on piles of cash are always better rewarded than poorer people. Ever heard of "the rich gets richer"? This is a characteristic of capitalism, not inflation or deflation. Also:
A) Inflation promotes careless, immediate spending.
B) Deflation promotes saving, which is good. Why derogatorily call it hoarding?
C) The average lower and middle class person is a bad saver and bad investor unable to find and trust investment vehicles beating inflation.
Then add A+B+C and realize why deflation would promote healthier financial habits (having savings) and might just particularly help the lower and middle class...
- Nursie 13y agoa) inflation promotes careful investment rather than just sitting on heaps of cash b) Saving is really only good when the money is put to work for other people, rather than just sat on c) The average lower and middle class person is in debt Deflation would not promote healthier habits, it would limit cash supply and create incentives for people to limit it further. Money is a medium of exchange, find something else if you want a store of value.
- mrb 13y agoInstead of continuing to argue on specific points, I will say I think you are grossly misunderstanding the level of deflation we are talking about. There is no sharp boundary between a +0.1% inflation rate and a -0.1% deflation rate where suddenly all hell breaks loose. The importance of changes (bad or good) vary gradually along the line. And if the Bitcoin economy stabilizes to representing a fixed fraction of the worldwide economy (be it 1 or 10 or 100%) then the rate of deflation Bitcoin will endure would be equal to the rate of growth of the economy. So we are talking about 1-4% only (average OECD world GDP growth for last few years).