Inflation and deflation always exist. The question is to what degree. I would revisit your understanding of this topic if possible.
Comment on Is there a theoretical limit to profit?
ryathal@sh.itjust.works 2 months ago
No. Or at least not while inflation exists.
Orbituary@lemmy.world 2 months ago
ryathal@sh.itjust.works 2 months ago
Inflation and deflation are mutually exclusive they can’t both exist at the same time.
Orbituary@lemmy.world 2 months ago
I didn’t contradict what you just typed despite what you think I intended.
givesomefucks@lemmy.world 2 months ago
That’s not the point of inflation.
Our economy needs inflation to discourage saving and incentive investing.
If there was no inflation and 3% interest on savings, that’s all people would do.
So they make inflation more, and people lose purchasing power in a savings account, and instead invest, which pumps up stock prices for the whales who knows when to cash out.
On a smaller level it once tives people to spend as soon as they get it, because next year a $100 is worth less, so they spend while it’s worth more.
It’s a house of cards and when the wealthy owns the government there’s no one to hit the brakes on profits before the economy crashes and burns.
ryathal@sh.itjust.works 2 months ago
Where do you think profit comes from? Spending is what makes profit happen.