Subnostr

If we didn't have inflation, when someome got an idea for a cool new thing, they wouldn't be able to build it because there's literally no money left to go around. Every unit of money is already allocated to something.

If someone were to invest their savings (which it's questionable ifnsavings would even exist in the same way we think of it now simce there's not enough money to go around, but just putting that aside for a moment...), there couldn't be any return on investment because there's no additional money.

In terms of buting power, people are poorer in a deflationary economy.

These are the argument I heard earlier tonight. Can someone point me to succinct counterarguments? Importantly, something that doesn't require studying economics for years, but something I could just casually mention in a pub in 60 seconds and get the point across to a normal person. Ideally 160 characters or less! 🔥

Thethird0cnzo 1y ago

Maybe I got this idk:

Money is always moving so there will always be some money to exchange for goods and such.

You buy a building - parts manufacturers and labor get paid... Labor at the very least uses that money for stuff and so on.

Without inflation the amount of money in circulation will probably decrease quite a bit. Yet as long as that money is divisible then the value goes up as civilization progresses and the amount in circulation keeps decreasing...

So a building will cost less money in a scarce money system as time goes on because the value of that money went way up...

Even if no one wants to spend anything and everyone sources their own needs... Eventually someone will want to buy something and it will be cheaper and cheaper as time goes on cause less money is moving... Money is scarce... More valuable... And it's measuring the value of civilization which is always progressing on average.

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Discussion

mark tyler 1y ago

Good ideas will still be funded. They will be valued appropriately by people with a good alternative to funding them (saving) instead of people who are piling into anything that might grow because if they don’t the government will steal their money. The only thing we will lose is the stupid ideas.

Thethird0cnzo 1y ago

Yup and gov contracts by comparison take forever and are incentivised to do so they get paid more. Stupid ideas like pyramid schemes - trump network and so on lol- won't work in a sound money system.

I like it. Only good ideas will be funded for sure!

Tesla would've been funded like crazy if he was around today.