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logicchainslast Wednesday at 4:43 PM2 repliesview on HN

It's not just a currency issue; inflation is by definition a reduction in the purchasing power of a fixed wage, and the issue we're facing is that the purchasing power of people's wages is less. If their wages were denominated in a unit of account that wasn't continuously losing value, they wouldn't be continuously losing purchasing power.

The reason you may not know it's an issue is because inflation in our current system isn't just a loss of purchasing power, it's a transfer of purchasing power to those who first receive/spend the newly created money: the banking/financial system. So of course the system invested a lot of money, time and effort in convincing you that it's a good thing to continuously donate a fraction of your purchasing power to the finance industry every year.


Replies

quercuslast Wednesday at 4:59 PM

I can't remember a bigger HN blackpill than this getting downvoted.

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erulast Wednesday at 5:06 PM

> inflation is by definition a reduction in the purchasing power of a fixed wage

So what? Nominal wages can go up just fine. They do that all the time.

> it's a transfer of purchasing power to those who first receive/spend the newly created money

No. That would only be true, if economic actors were too stupid to anticipate expected inflation. People ain't that stupid.