Why if I have $100 right now, 10 years later that same $100 will have less purchasing power? Why can’t our money retain its value over time, I’ve earned it but why does the value of my time and effort go down over time?
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ELI5 – We need to have inflation in order for people to spend their money. If money would constantly gain value, people would rather stockpile money then buy goods. If people don’t buy goods, economy can not work. Therefore inflation is absolutely necessary in our society. But it needs to be kept at a very slow pace, so people don’t actually notice their money becoming less and less worth, or you create fear of everything becomming overly expensive.
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