we all know the thing where it’s like oh in the 60s x amount of money is equivalent to x amount in today’s time, and how people could earn a dollar for an hourly wage because it was worth more back then. is it possible to have a “reset” on inflation where we go back to spending/earning a dollar, or will it keep permanently increasing to where in the future 10k is chump change?
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The other comments addressing redenominating the currency so $10 becomes $1 are correct. There is another method that could be on your mind, which is “what if currency just went down to where it was ‘naturally?’” I’ll address that.
That would be immediately economically disastrous because no one would spend a dollar today if they could know that next week it would be worth more. Which would cause the economy to immediately stop working. So a government could never announce “we are going to take so many dollars out of the system that a penny will buy a pack of gum again.”
But if you think about it for a second, that’s fine. We want price stability. We don’t need packs of gum to be worth exactly a penny or a quarter or a dollar. If we did want that, we would be on the Wrigley Standard which is dumber than the gold standard.
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