> Final note, inflation helps encourage people to use their money and keep the economy moving.
Short term thinking in itself is damaging.
But then thinking something is "worth more" because it costs more dollars a year from now is deceptive.. how much did its value increase vs the dollar decrease?
But it's convenient for tax authorities as you're taxed on the gains, regardless of the why/how it changed.
> But then thinking something is "worth more" because it costs more dollars a year from now is deceptive.. how much did its value increase vs the dollar decrease?
You have missed the point.
Inflation encourages activity because your money is worth less a year from now. Better to get something for it, or invest it.
Let’s say you have an economy of 100,000 units of work done in a year and thus is backed by a fixed supply of $100,000
You do enough work for 1/100th of the economy and receive $1000. You keep this in a box and do nothing for years.
In years time the work done in the economy is 1 million units, but money hasn’t changed. Your $1000 can no purchase 1:100th of the economy you haven’t built, or 1,000 units of work
Short term thinking in itself is damaging.
But then thinking something is "worth more" because it costs more dollars a year from now is deceptive.. how much did its value increase vs the dollar decrease?
But it's convenient for tax authorities as you're taxed on the gains, regardless of the why/how it changed.