: Why is (consistent and steady) inflation considered to be a good thing? We hear about rising wages chasing the rising cost of living, and we do this calc every time we look at historical prices, so why is this better than static prices? Is it all driven by TVM?
In: Economics
It doesn’t make sense. I wish I read more about Austrian economics when I was younger.
https://mises.org/mises-daily/inflation
People make doom and gloom arguments about deflation, and I disagree. Sure, it would knock out coompanies who make useless items that people don’t find valuable, but no one will hoard all their money and stop purchasing things they need like food, gas, cars, games, phones, etc..
Technology is already deflationary. Last year’s iPhone is about half the price of the new one, but they still sell out of the new ones every release. Same goes for computers, tvs, and any tech. If deflation is so bad, why are tech companies still profitable? Why do most people in America always have the latest and greatest tech? Based off how people act with recreational items, we think they would not buy items they need to live and enjoy life? Deflationary death spirals are BS.
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