Have you ever wondered, why is that if there was no inflation, people would spend on nothing?

What is #money ? Money is a commodity, that can be exchanged for anything. It is an intermediary to make saving the surpluses for worse times and exchange of goods easier.

If there was no money, you would have to exchange your goods to other goods then other goods until you get what you want. Also if you grow food, it will be hard for you to save up from eggs e.g..

So people do not want money, they want the things they can buy with it. Power, iphone, car, house, free time, etc.

So if the prices of things would go down, they would gladly discard all the stuff they buy now to have their money worth more over time, until infinity?

So people would live 70-90 years buying their basic needs to see their net worth measured in buyable goods to go up, so that they never spend, and enjoy nothing in their life?

I see this claim a bit absurd.

Will they think more about what they spend? - Definitely.

Will it be a problem? - Decide on your own.

If they spend less, it means there will be less consumption, and this results in less production.

Is it a problem to have less production? - In terms of GDP for sure.

But is it really a problem? Is more always better? More GDP better?

Does it make sense e.g.: to produce toasters infinitely? It increases the gdp, but if there are no users for it, does it make sense?

In a world where increasing production is the goal, would you produce short lived things or long lived things (planned term of limitation). Of course in terms of production short lived things are better, because they can sell the same things again and again. But in such a case what happens with the already used products? They become trash.

Does it mean that optimizing on more production aka GDP means generating more trash? - Look at the above example.

Is more trash a problem?

Trash needs to be stored or recycled. Also creating the product that becomes trash uses Earth resources. These Earth resources might not be able to replenish in the speed that we generate trash.

Does it make this logic of producing more sustainable then? - No.

Is it a problem doing things in an unsustainable way? - I leave it onto you, as this became a little long post.

Stay safe, be awesome! See you around.

#plebchain #coffeechain #gdp #economics #money #production #sustainable #sustainability #inflation