Why do governments create inflation? Inflating currencies are really annoying as they not only lead rising prices but obliterate savings. While off-putting at first glance, inflation actually benefits everybody indirectly. Inflation makes long term debt like mortgages easier to pay, encourages investment, fosters economic growth, and much more. This video explains the various benefits of inflation for you and me.
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LOL, you have to be next level sheep to believe this crap.
The average homeowner changes homes 3 times. Each house costs more due to inflation. You only win if you stay in a home you bought early in life.
Those getting wage increases due to cost of living are behind again the next month.
Only 63% of the US population is getting wages.
16% of the US population is over 65 (most retired).
It would be much better to aim for stability with perhaps a 1/2 percent inflation.
Inflation helps the wealthy get richer. The middle class and poor are losing.
Who can afford new homes now?
The FED has attempted to force people to choose between savings and investing. Investing historically goes up and down.
Investing is NOT a new type of saving. Savings has guarantees; investing does not, it is gambling.
In Greece for example, the wages have been decreased on top of inflation. My mother as a school principal was making 1800/month in the 90s(2700 in today's money) and now at the same school, at the same position, the wage is 1200 euros/month.
While this is the broadly accepted answer in modern monetary theory, it presumes that savings are "bad" (and necessarily idle), which isn't always true. It's also deliberately manipulative: trying to force continued "output" whether it's natural or not. Deflation is the natural result of technological progress and we deliberately prevent it in order to cause never ending toil and consistent scarcity.
we had to watch this to do a test lmao.
No, deflation is good because people are driven to consume and will spend even more when prices go down.
6:19 what happened dude
Hmmm Ok
I already thought that inflation is a good thing by default.
theres a story a time when japan was at -1%inflation aka 1% deflation,the Central Banks were going nuts and spend billions in printing money,and other monetary stuff to create 1% inflation.
But tbh The japan story is much better than when some Old African dictator flip The Printer to prints for days.