return2ozma@lemmy.world to Work Reform@lemmy.world · 1 年前Just a reminder...lemmy.worldimagemessage-square91linkfedilinkarrow-up11.48Karrow-down121
arrow-up11.46Karrow-down1imageJust a reminder...lemmy.worldreturn2ozma@lemmy.world to Work Reform@lemmy.world · 1 年前message-square91linkfedilink
minus-squareObjectivityIncarnate@lemmy.worldlinkfedilinkarrow-up13arrow-down1·1 年前Uh, no, the primary reason inflation exists is so that there is an economy, lol. If there was deflation, the ‘optimal’ thing to do with your extra cash would literally be to stuff it under a mattress. Too much inflation is obviously bad, but deflation is also really bad. A tiny amount of inflation is optimal long-term.
minus-squareBallsandBayonetslinkfedilinkarrow-up4·1 年前I might need an ELIF on this, but why any type of -flation? Why not have a dollar today be equal in purchasing power to a dollar 40 years ago, or 40 years in the future?
minus-squareObjectivityIncarnate@lemmy.worldlinkfedilinkarrow-up1·1 年前Short answer is: to incentivize investment/entrepreneurship etc., which is good for the economy as a whole.
Uh, no, the primary reason inflation exists is so that there is an economy, lol.
If there was deflation, the ‘optimal’ thing to do with your extra cash would literally be to stuff it under a mattress.
Too much inflation is obviously bad, but deflation is also really bad. A tiny amount of inflation is optimal long-term.
I might need an ELIF on this, but why any type of -flation? Why not have a dollar today be equal in purchasing power to a dollar 40 years ago, or 40 years in the future?
Short answer is: to incentivize investment/entrepreneurship etc., which is good for the economy as a whole.