this post was submitted on 07 Feb 2024
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So why is there always inflation? Maybe we're living off the future?
An inflation rate of around 2% is healthy. It forces people to invest in stuff. If there wasn’t inflation, people would just hide their cash under their mattress, no loans would be given to anyone, it would be bad.
So because of infinite growth? But we know that's not sustainable.
Infinite growth is fine when the thing growing isn't real, like money. Money is not a resource we find in reality, it's purely a human-made representation of value. It's only when it spreads to real resources does infinite growth become a problem.