9 ms·
More tame inflation for people who maintain their good paying jobs will be in an even better position
by bbbbzzz1 3y ago
More tame inflation for people who maintain their good paying jobs will be in an even better position
- deltree7 3y agoDeflation is always worse than inflation. 1930s is always worse than 1980s.
- mindslight 3y agoLike how deflation totally wrecked the PC industry because nobody ever buys computers, knowing that tomorrow's model will be more capable and less expensive? Or how if we knew grocery prices were going to be lower in a year, most people would forgo buying food and starve? </s> The prices of things naturally want to go down - this is exactly what market optimization aims to do. The Fed has been creating ever more new money to erase the gains of economic and technological progress. If this new money were being spent by congress on tangible projects, then at least we'd have something to show for it. But instead it has all been wastefully dumped into creating an asset bubble that's just a huge handout to the rich. If you want to know the cause of ever growing rich-poor divide, look no further.