I just read this on the Crypto Reddit Forum
It garnered 10 points as well. :eek: How many holes can we poke in this pie in the sky fallacy?
Inflation is good because it forces risk taking and thus economic stimulation??!?!?!?!?!?
Quote:
Low Inflation isn't this evil construct people on this sub make it out to be. It prevents hoarding.
Without inflation people just hold cash without seeking other methods to earn an ROI to at least offset inflation. This means lending their money to other entities so that they can use it to expand their own interests, be it government bonds, corporate bonds, shares, loans or capital investments.
Without inflation we have stagnation or deflation and the whole economy shrinks. That means losing jobs, businesses and ultimately consumer purchasing power and consumer choice.
Japan has been experiencing deflation for several years now and is facing serious problems because of it.