Our economy needs inflation to discourage saving and incentive investing.
If there was no inflation and 3% interest on savings, that’s all people would do.
So they make inflation more, and people lose purchasing power in a savings account, and instead invest, which pumps up stock prices for the whales who knows when to cash out.
On a smaller level it incentives people to spend as soon as they get it, because next year a $100 is worth less, so they spend while it’s worth more.
It’s a house of cards and when the wealthy owns the government there’s no one to hit the brakes on profits before the economy crashes and burns.
That’s not the point of inflation.
Our economy needs inflation to discourage saving and incentive investing.
If there was no inflation and 3% interest on savings, that’s all people would do.
So they make inflation more, and people lose purchasing power in a savings account, and instead invest, which pumps up stock prices for the whales who knows when to cash out.
On a smaller level it incentives people to spend as soon as they get it, because next year a $100 is worth less, so they spend while it’s worth more.
It’s a house of cards and when the wealthy owns the government there’s no one to hit the brakes on profits before the economy crashes and burns.
Where do you think profit comes from? Spending is what makes profit happen.