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> The whole thing is a ponzi scheme. It absolutely is. If you think of money as units of labour instead of 'wealth', it makes more sense. Every year, more pe
by Mikeb85 11y ago
> The whole thing is a ponzi scheme.
It absolutely is. If you think of money as units of labour instead of 'wealth', it makes more sense. Every year, more people are born, the workforce grows, more things are produced, more food is eaten, etc...
The money supply has to reflect that there's always more of everything. This means inflation. And it's not a bad thing.
- tomp 11y ago> The money supply has to reflect that there's always more of everything. This means inflation. And it's not a bad thing. Wait, what?! You don't understand inflation. If there was always "more of everything", the result would be deflation. More food -> food costs less. More cars -> cars cost less. More apartments -> apartments cost less. Economics 101.
- Mikeb85 11y agoYou're forgetting that, as part of more 'everything', that also means more consumers, and more money printed...
- tcbawo 11y agoHistorically, a small amount of inflation has been beneficial. Nobody likes to take a wage cut. Also, even a small amount of deflation quickly makes debt repayment unsustainable. It's hard to repay your loan when you're taking in less money. Greece will never get out of this cycle until it's economy picks up.