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?
In: 5591
Inflation discourages hoarding money.
If I just sit on a pile of cash in my checking account, I’m actually *losing* value because of inflation. To prevent this, I need to have my money invested in something. This encourages investment, which (should) spur business and the economy more generally.
EDIT: to be more specific I mean cash. Inflation prevents hoarding of cash, specifically.
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