A certain amount of inflation works together with the profit motive to drive investments

in #bitcoin7 years ago

It tells me that rather than hoarding the dollars hoping to rent seek instead people were motivated to invest those $ to increase their returns, thus resulting in the vast amount of products and services you see today

It has certainly benefited those who've had direct access to the money supply and a select few high achievers. For the other 99%, who's wealth continues to be diluted every time the debt ceiling is raised, it hasn't worked out so well...
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Actually, inflation hurts the poor less than you'd expect as they spend a greater % of income rather than saving it. A certain amount of inflation works together with the profit motive to drive investments that generate higher returns than inflation

They still have to spend it on goods that are increasing in price due to the inflation. If you have $600 in cash and a $100,000 house then 10% deflation is costing you $10,000, 10% inflation is costing you $60. Deflation is only a good thing if you plan to keep all your wealth in cash.