I’ve been wondering this question for a while. Ignoring current events, why is a little bit of inflation desirable?

I do understand that it’s done to “stimulate” the economy so people don’t let their cash rot in a checking account, but isn’t it a zero-sum game? Everybody says that money is not meant to stay where it is, rather, should flow through the economy. But if the economy always needs injections of liquidity because otherwise it fails, isn’t the economy broken?

I feel like there’s something I can’t comprehend about that.

  • reksas@sopuli.xyz
    34·
    14 hours ago

    so basically inflation is good only if you are one of the wealthy ones. being able to get a job that pays enough so you dont have to live hand to mouth. can even get a loan, pay it off and still have some money left over to maybe live. Also having a job you can trust doesnt kick you off at moments notice is also required to even consider any debt.

    • LastYearsIrritant@sopuli.xyzEnglish
      6·
      14 hours ago

      Over the long term, wages go up. Over the short term, people get left behind.

      There are lots of things that suck for individuals, but are good for the economy as a whole. There are also lots of things that suck for the economy as a whole and are great for a select few.