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Saying something is so doesnt make it so. Yes its a good thing when slow, bad thing when fast as I've explained why.
No one saves by sitting on a huge wad of cash except extremely irresponsible people. You should have a small emergency fund and the rest of your money should **always** be in low-risk investments (a mutual fund at a minimum). Anything else is burning money and just isnt done except for people who dont know how to manage money. Moreover we dont want economies where people hoard money, that creates unhealthy economies as they become stagnant. So inflation discourages that and instead encourages people to use their money to invest and stimulate wealth growth.
Never said your suppose to just spend money on anything.. No one should be buying fancy expensive shoes they dont need or other expendables. I said responsible money use means **investing** this means at a minimum a mutual fund, that IS using money for productive ventures...
Point is the **last** thing you should be doing is hoarding wads of cash.
No one with any money wants to hoard cash without investing. When inflations happens no one is running to outside countries to put their money in fiat, it just isnt what the reality is. Inflation means the price of assets is going up, anyone with half a brain therefore converts their money to assets (local assets), there is no reason to move their money out of country when the inflation is benefiting them here.
People having to manipulate funds so they don't lose there relative value is not "smart" its an unfortunate reality due to poor fiscal policy. having to "invest" not to profit but simple to sustain is not good commerce.
Inflation is a cancer on Economy's, and people who manipulate it for their benefit do not "add" to the Economy. They simple get ahead of the mess others have to clean up.
Notice what your saying, People have to min max their capital SIMPLY to stay even by your own logic. In economy's that suffer from inflation investment by foreign currency happens, this is a double edge sword and a whole can of worms, but you should of realize that when local buying power decrees local investment becomes impossible DUE to inflation. This is why Countries/Nations Suffering from Keynesian policy's you advocate for, get bought and raped by foreign investment. A man who pockets his hard earned wealth is not a fool, when in 5 years what was valued at 50k is now relatively worth 10k. He is a victims, a victims of robbery by banks and governments, Your suggestion of "just min max so you don't get screwed as much" is foolish.
If your belief held any water, Detroit would be one of the most invested places in America.
When did I say money runs dont happen? Not keeping your assets s money though protects you from it. Golds value doesnt go down when money runs happen it goes up.
"People having to manipulate"
No one has to manipulate anything. Just dont hoard money, other than that your fine. Keep it as gold if you want something that is like money but relatively wealth stable.
You can keep saying inflation is a cancer all you want, but youll still be wrong.
Worsening the buying power of the dollar only hurts the Economy long run and all suffer except banks.
Hoarding money is not a "bad thing", yes people should have their money work for them not because fools are printing money and killing purchasing power but because it asperates value in theory . Hoarding wealth also may make sense to do, your atleast familiar with terms like bear vs bull.
keynesian Economics are shit.
> If you think that someone's wealth slowly losing value due to inflation then you fundamentally do not understand what economics are, or are for.
Wrong, inflation **grows** wealth.. it diminished fiat, big big difference. A persons **wealth** (so long as they arent hoarding fiat) grows with inflation doesnt diminish.
> Worsening the buying power of the dollar only hurts the Economy long run and all suffer except banks.
Again wrong, the buying power of the dollar isnt what is relevant.. everyone has more dollars with slightly less buying power. The overall buying power is higher not lower. There are effectively more dollars in circulation.
> keynesian Economics are shit.
This isnt about keysian economics, inflation is a good thing (when slow and healthy) in multiple economic model systems.
IF inflation is good because it "promotes investment" (wow) then surely lots of inflation Promotes lots of investment, can't have it both way my dude
https://www.youtube.com/watch?v=x5WkNxbvLFc
We've already seen the evidence this is just plain wrong. We used to fix the dollar so it wouldn't inflate and it devastated our economy. Thankfully we stopped.
And yes you can have it both ways where too much inflation is harmful and too little is harmful. Many things in the world behave that way, it is called non-linearity.
No, inflation causes asets to **gain** value while money to **loose** value.. No one takes money out of an economy when there is healthy inflation, they move it from money to aset wealth and profit off the inflation directly.
Great so your againsted fixed dollars and agree inflation is better than a fixed dollar. then we agree, all done here.
"irresponsible people" are people getting screwed by "money printer go burr". Its not a failure of an average joe because monetary policy is Keynesian.
Next is your problem with "hoarding" wealth, Productivity and prosperity does not come from simply "spending money" its only what the ventures are productive. Wasting wealth does not "stimulate" an economy and stagnant economy's do not happen because people don't spend more then they want.
Finally is a delusion that inflation encourages people to invest, this is just funny. Inflation encourages people to convert their wealth into different forms of wealth typically outside the National Economy, hiding and saving the buying power people have and doing the exact opposite of investing. Peoples money losing value does not promote them to invest (like anyone should tell others what they should do), it promotes the literal opposite. This logic you propose is just awful and helped create the mess of 2008(though not entirely I know).
Side note your logic of inflation good hyperinflation bad is showing that you don't get the fact that currency is just a tech for trade of good and services. Hyperinflation is bad because inflation is bad.
https://www.youtube.com/watch?v=6W_9I0nk8uI