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.
The first paragraph is doing a tricky little sleight of hand. Yeah inflation reduces the power of a fixed wage. Nobody has that kind of fixed wage. The issues with wages and prices we face are not caused by inflation, which is really easy to compensate for.
The second part is just confusing. Inflation benefits the first to "receive/spend" new money? Receiving and spending are opposites, and inflation benefits anyone that's spending whether they got that money first or fiftieth.
The US had 0-1% inflation a year until the federal reserve. I blame the FED and currency, yes. Look up the "what happened in 1970" charts, and its we got off the gold standard.
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.
I can't remember a bigger HN blackpill than this getting downvoted.
The first paragraph is doing a tricky little sleight of hand. Yeah inflation reduces the power of a fixed wage. Nobody has that kind of fixed wage. The issues with wages and prices we face are not caused by inflation, which is really easy to compensate for.
The second part is just confusing. Inflation benefits the first to "receive/spend" new money? Receiving and spending are opposites, and inflation benefits anyone that's spending whether they got that money first or fiftieth.
> 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.
The US had 0-1% inflation a year until the federal reserve. I blame the FED and currency, yes. Look up the "what happened in 1970" charts, and its we got off the gold standard.