this post was submitted on 29 Apr 2024
191 points (92.1% liked)

Showerthoughts

29827 readers
940 users here now

A "Showerthought" is a simple term used to describe the thoughts that pop into your head while you're doing everyday things like taking a shower, driving, or just daydreaming. A showerthought should offer a unique perspective on an ordinary part of life.

Rules

  1. All posts must be showerthoughts
  2. The entire showerthought must be in the title
  3. Avoid politics
    • 3.1) NEW RULE as of 5 Nov 2024, trying it out
    • 3.2) Political posts often end up being circle jerks (not offering unique perspective) or enflaming (too much work for mods).
    • 3.3) Try c/politicaldiscussion, volunteer as a mod here, or start your own community.
  4. Posts must be original/unique
  5. Adhere to Lemmy's Code of Conduct

founded 1 year ago
MODERATORS
quinten
vatlark
forkball
Thekingoflorda
191
We keep measuring everything's value with something that continuously loses value over time (self.showerthoughts)
submitted 7 months ago by 3volver to c/showerthoughts
62 comments fedilink hide all child comments
 

It's becoming really annoying.

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 2 points 7 months ago* (last edited 7 months ago) (3 children)

I guess a little inflation is good,
to prevent all money from ending up in a single party's hands.

However that's the only upside I could think of, other then that I fully agree with you.

Central/regional banks "printing" money, through bonds and fractional banking, is blatant stealing from people who worked / saved in the past imo. Since it leads to inflation / devaluation of the currency.

[–] graham1 5 points 7 months ago* (last edited 7 months ago) (1 children)

to prevent all money from ending up in a single party’s hands.

I beg to differ.

Example: suppose you own property, gold, a business, or something else with tangible value. When inflation causes cash to decrease in value, your assets are safe. They have intrinsic value.

Example: suppose you're living a lifestyle where you can't afford assets like that. Maybe even living paycheck to paycheck. You make the same money, and you can buy less with each paycheck. You can't start buying assets when money keeps getting tighter.

I think it's pretty simple to see inflation only hurts the have-nots, while others are protected by the value of their accumulated assets.

[–] [email protected] 3 points 7 months ago

Throughout the 1800s, the us saw increasingly more severe and more frequent economic boom and bust cycles. This helps the wealthy as they are the ones who can buy up all the assets during the busts, and the common man gets fucked. This all culminated with the great depression. Its something like 20 recessions of 15% or more retractions between and 1930.

When the fed was given teeth to actually control the fractional reserve system., we've seen constant inflation, but the number and severity of economic recessions has gone way down.

We've seen 1 retraction over 15% since 1940. And that was because of COVID lockdowns.

This small, controlled inflation is great for the regular joe because it creates stability. And it was all going well until deregulation during the 80s.