The reason for inflation is, that this incentivizes people to spend. Because in current economic terms, spending of an economy defines its success. But in such a scenario, you have 2 ways to acquire money. Provide value, or just print money. Therefore providing value is not incentivized anymore, because printing is easier. Principle of least resistance.

But in an economy, where there is fixed supply, your only way to get money, is to provide value. Therefore, you are incentivized/have to provide value. And if you want to provide value easier, you have to innovate. So a fixed money supply is incentivizing innovation as well.

Which economy do you want to live in?

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Discussion

Many year ago, i asked why measure GDP as success when there are people that can’t put food on their table still within a high GDP state.

The notion of AD-AS should be put aside and focus should shift to individual value creation, overcoming the lack of opportunities for some.

I agree!

Unfortunately, the rules setup now are benefiting the opposite.

So basically there are the people who are close to money printing. They will want to keep this power.

People who are far away from that, wants to save their wealth, and live an abundant life. So they have to accumulate wealth in the soundest form of money.

So basically the needs and wants of government and people are different, so one side has to be stronger.

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