this post was submitted on 19 Sep 2024
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Work Reform

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[–] damnedfurry@lemmy.world 12 points 2 months ago (1 children)

Uh, no, the primary reason inflation exists is so that there is an economy, lol.

If there was deflation, the 'optimal' thing to do with your extra cash would literally be to stuff it under a mattress.

Too much inflation is obviously bad, but deflation is also really bad. A tiny amount of inflation is optimal long-term.

[–] BallsandBayonets@lemmings.world 4 points 2 months ago (1 children)

I might need an ELIF on this, but why any type of -flation? Why not have a dollar today be equal in purchasing power to a dollar 40 years ago, or 40 years in the future?

[–] damnedfurry@lemmy.world 1 points 2 months ago

Short answer is: to incentivize investment/entrepreneurship etc., which is good for the economy as a whole.