Quote from: Darker45 on Today at 02:47:58 AM

In a sense, inflation is good because it forces people to spend. If people spend, commerce thrives, and the economy moves. There is no point keeping something when it rots over time. That's how fiat is. It's like a perishable food.

Second, inflation is good for those who borrow money. As money is losing value over time, what you borrow today is much more valuable than what you will pay in the future.

I'm not saying inflation is entirely good, though. And it seems that the tide is turning as far as appreciating inflation is concerned. There seems to be a paradigm shift and Bitcoin has probably played a vital role.

Thanks for putting it so simply.

I don't think the basic premise that 'some' inflation is needed is going to change anytime soon. Like you said, if there was zero inflation, there would be no incentive to invest. People with generational wealth would simply sit over it and earn interest because they wouldn't have to care about beating inflation.

It is a vital part of the macroeconomic engine of our world. Its a necessary evil and like all things, balance is crucial.

Japan is often the cautionary tale of what happens when a wealthy, hard working but ageing population goes into the state where there is zero or no inflation. The Govt provides stable. low-paying jobs to a bunch of people, rest of the society breaks its back in a cycle of low-paying temporary or contractual jobs and 'work' becomes a big part of your being. In my opinion, you can't have the spirit of risk-taking and entrepreneurship that defines capitalism, without some level of inflation.