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.
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.
That’s… not really how that works. I mean inflation is there to keep people from saving when they could be investing their money, but that’s not to make money for the whales. Money sitting in a bank account doing nothing is bad (economically speaking) even when the owner of the money isn’t rich. More money moving is better for everyone.
I mean real wages have been increasing under Biden so he’s not 100% wrong about the whole economy thing, but either way that’s not relevant to my point.
Lots of money is moving, it’s not good for the majority of us
Because it’s moving to the top. The latest round of price gouging inflation is a special case and not representative of inflation at large.
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.
That’s… not really how that works. I mean inflation is there to keep people from saving when they could be investing their money, but that’s not to make money for the whales. Money sitting in a bank account doing nothing is bad (economically speaking) even when the owner of the money isn’t rich. More money moving is better for everyone.
*Gestures broadly at “the economy” Biden kept bragging about
Lots of money is moving, it’s not good for the majority of us
I mean real wages have been increasing under Biden so he’s not 100% wrong about the whole economy thing, but either way that’s not relevant to my point.
Because it’s moving to the top. The latest round of price gouging inflation is a special case and not representative of inflation at large.
Where do you think profit comes from? Spending is what makes profit happen.