interesting subject, unfortunately inflation is a very much real thing n 99% of countries on earth, i think it started when the gold standard stopped to exist & limitless money printing started where governments spend more than what they produce & they print more money to cover the deficiency & with more money printed out of thin air rather than a real increase n economy money lose it's value. if wages increases at the same rate as inflation people will keep their purchasing power but again the increase n wages shouldn't b due to more money printing because that will lead to an endless cycle of inflation that will cause investors & businesses to lose faith n the currency & even regular people will keep their money n other currency that they trust like swiss frank or emarati dirham for example, hence money printing isn't a magical solution for money deficiency & the only way to increase the purchasing power of the people is through fighting corruption & fixing maldistribution through regulations & strictly applying those regulations, & finally by increasing economic productivity with the help of new techs & learning from other countries experiments & experiences. finally also the geopolitical tension & economic wars with the cutting of supply lines & highly increasing the tariffs- play a significant role n inflation of foreign products or local products that use any imported materials. definitely agree that govs should invest n building other cities rather than only focusing on the existing ones that will become more crowded, more polluted & less organised & due to lack of other options demand will keep increasing with the increasing population leading to higher prices that at some point will pass the fair price for the services provided by the city itself. good post & interesting subject- have a good day.
You are viewing a single comment's thread from: