• Asetru
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    19 hours ago

    Deflation is actually bad because it would be an incentive to keep rather than spend money as its value would just increase by itself.

    • BallsandBayonets@lemmings.world
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      17 hours ago

      Money that is kept and never spent is worthless. Currency has to be used to have value, otherwise it’s just paper (or bits). The working class won’t hold on to their money, they have bills to pay, groceries to buy, etc. Only the wealthy would hold on to their money, which they’re already doing.

      • Asetru
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        5 hours ago

        That was my point, pretty much. The issue is that money that’s kept is useless for society, but if its value increases it gains potential usefulness for its owner. I’m not saying that ordinary people will stop buying food and I’m not saying that corporations are doing community work right now, but the world in which the rich get even richer without even spending their money on something will be problematic at best. The economy will crash while everybody will hold on to whatever moves they have.

      • atzanteol@sh.itjust.works
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        16 hours ago

        Only the wealthy would hold on to their money, which they’re already doing.

        No, they invest it otherwise it loses value over time. Invested money is put to work.

          • sinedpick@awful.systems
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            11 hours ago

            No, like paying your wages. You should read a bit about how things work before getting upset.

            • ironhydroxide@sh.itjust.works
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              10 hours ago

              The fuck you think investors do at all? What value do they create? They definitely don’t pay my wages from their own “investment”. My wages are paid from the profits created by myself and coworkers working to create, market, sell, distribute the product. Soon as those profits don’t hit targets investors will absolutely vote to downsize or shutter entirely, not “invest” and continue paying wages.