Topic: Is Inflation Necessary - page 2. (Read 1362 times)

inflation is a normal thing in all country all over the world, it doesn't only happens to some country. For me inflation has it important too in the sense that it increases work force of any country. For example when the goods becomes expensive more people will increase there production. Be it agriculture or manufacturing sector and many other sectors. It also reduce  importation and increase exportation.

The reduction in value of currency is as a result of limited in supply in goods which cause scarcity and it causes inflation and goods becomes expensive and people say money has reduced in value. Money doesn't reduce in value rather scarcity males things more expensive than before but people misinterpret it.

I don't think so. If gold was used as money, inflation would have affected it. because if it was measured in 1gram to buy a basket of orange before, When inflation happens, 2 grams of gold would be used to purchase that same goods of 1gram of gold. Using gold as currency does not mean inflation would not affect it.

Though most inflation is a natural inflation while some are manipulated by government, but in which ever way anything that has advantages also has disadvantages because most people gain from it while some lose from it. So its vise versa.

One important thing to scale through inflation, is to pull out our fund from fiat to bitcoin to avoid inflation.

Inflation is necessary for governments and anyone else who is in debt. It takes money from other people's savings.

We have given too much power to governments and banks as a society. Now they hold "all of the cards" to either destroy or recover the economy. The introduction of paper money marked the beginning of the end for the world economy. Being backed by nothing other than debt, gives governments full advantage over our financial lives. The situation is such where the poor become poorer, and the rich, richer. Inflation is necessary to liven up the economy. But too much of it is harmful. Especially to those in need.

Fortunately, we have ways to beat down inflation. That's assuming with have enough capital to invest in scarce assets such as Bitcoin and Gold. These are uncertain times we're living into. So we should be prepared for the worst.

In fact, it is not a matter of whether or not gold can be used as a transaction tool at this time in order to avoid inflation itself which is still rife nowadays. But it is more difficult for all countries to implement it at one time because developed countries can still avoid inflation with their own efforts so that the impact of the decline in the value of their own currency is not too much. So this is also still being considered by countries that are not developed in an effort to ensure that inflation can continue to decrease every year.

When stagnation happens then the whole sector gets worse and the ones who benefit are the ones who have the big capabilities like the companies. Meanwhile, economic growth in the lower middle class will be hit so hard and they will even have to close all businesses that have been built for a long time. I don't look far because that happened when Covid hit and hundreds of small and medium businesses had to close all their businesses because they could from the stagnation of economic growth.

Both are much worse because they have the same role in killing economic growth. Like some of the countries you mentioned and maybe even many more who feel the impact of all that. The broader solution is that the government must have a way to overcome it and each individual also tries to prevent inflation so that it can be restored simultaneously.

I would guess that you are right that stagnation would result with big companies keep taking money, while smaller investor or just regular people not growing with it, so all the big companies would take all the money. But when we are talking about stagnation, we should not just take it face value, we can't just say this is why it is bad, we should compare it to make sure that it is bad.

So, when you compare stagnation to inflation, which one seems worse to you? I would say a very very high inflation could be much worse, of course a 5% inflation would be fine, that is not too much, I think people can live with that, anything under is perfect, but what if you had like those famous 100%+ ones? Argentina had one, Zimbabwe certainly had a lot more, and Türkiye recently had one I believe. Those are much worse than stagnation.

Imagine you are a king in the Middle Ages, constantly making new conquests. The gold you have access to is limited and after a certain point you cannot access new gold supplies. What do you do to persuade your army to make new conquests? Do you have any other choice but to add silver to the gold coinage? Today, instead of making new conquests, we are building up our countries to join the ranks of developed countries. We don't have unlimited gold mines, and worse, we are not even in a position to put silver into gold coins like a middle age king, so we use paper money, which is the only thing we can do, and we solve all problems with inflationary strategies...

I am accumulating gold, silver and Bitcoin, which are in limited supply, but these are the harsh realities of life and I cannot ignore them...

If a country experiences stagnation regarding the economic growth of a country then it has a big impact on people's lives because there will be an imbalance that occurs. So that the public sector which is usually a step to support people's lives will have problems, such as food problems and so on. The state has a responsibility for the economic growth cycle and they have ranks to control the prices of goods in the market. What happens is that they do not side with the people and consider more the problems of companies and the problems of the country's economy.

Usually this happens because the government is corrupt and has no vision in managing the country and although in certain cases all countries experience the impact of inflation or recession at an uncalculated stage because certain problems occur. Economic growth is very important because it speaks of a wide scope and if there is no principle to control then the problem will arise bigger.

It is needed, it doesn't create problem for the society at a small level, you need to think of high inflation. If you have it at 20% then yeah it's a problem, if you have it something more than that (which some nations do) then it's even a bigger issue, but if we are talking about 2-3% then we are talking about something that is good for the growth and you should have it.

Zero inflation means that there is no growth and that would mean that the nation has a stagnant economy and that would not help anyone, big companies would just earn more money and everyone else would lose. Growth is needed so that big companies would get that growth, and you would get a little bit as well, and everyone would profit from that situation.

I do agree that if you plan inflation into your future and act accordingly then you are going to be doing fine. That is why I think it's quite important to make sure that we are going to end up with something that will be fine, and this is why I think it is going to be something that will not be all that complicated, we just need to make sure that things going to be just fine. I know that it is not simple and it takes time, but if we are patient and have a plan then in the end the result will be quite well off.

This of course depends on how we could grow better and bigger, so in that case we are going to just do something that is not going to be all that complicated. Just realize that things are tough when you are not careful.

As you said, it is true that if inflation occurs there will definitely be positive and negative impacts, of course we have to think about the negative impacts first because in a country we will definitely first explore the economic level experienced by our society, regarding the financial situation experienced by the community If we are not good then this inflation will make it very difficult for people to meet their basic needs, of course.

So in this case, many countries do not dare to take the decision to carry out inflation, because the condition of society is financially unstable so that inflation cannot be carried out.

Inflation is inevitable. Especially when banks are in control of monetary supply. They can manipulate the economy to their benefit. Ultimately, the rich get richer, while the poor get poorer.

It's up to you to make a plan that will help you beat inflation in the long term. Investing in Gold, Silver, Bitcoin, and even Real Estate can help you grow your wealth as much as possible. Just spend less than what you earn, and there should be nothing worry about. Who knows how high will inflation rates go?

If it's the controlled kind of inflation and the wages of the workers are keeping up with it then yes in theory, it's a necessary thing but with how things are, I don't believe in the necessity of inflation because we're paying too much for it with the low wages and not being able to live our lives because we're all too busy working to keep up with the rent money, grocery, electric bills, gas bills, and water bills, basically almost everyone in the world would be grateful if inflation isn't a thing and that we can all be happy that we can afford with our minimum wage, all the stuff that's so expensive because of inflation. Hedge fund managers won't have anything to do anymore and all of the parasitic groups/companies are going to be going down thus lessening the real parasites like them.

Inflation is not always good and meaningful for a country's economy. It depends on the money flow in the market. Inflation can have both positive and negative effects on a country's economy. For example inflation reduces the opportunity cost of cash in the country and makes people more inclined to spend instead of saving and feel comfortable. Those who work for a fixed salary find it difficult to live as the cost of living increases. On the other hand as the supply of cash in the market is high, individuals or businessmen show interest in doing business. As a result of this new employment is created in the market as well as new entrepreneurs are developed in the country. So inflation means living differently for people with different incomes. That is why the government sometimes uses inflation to deal with economic emergencies but it should be done at a controlled level. If it is not controlled then the country will fall into hyperinflation which will definitely weaken the economic infrastructure of the country.

The pluses and minuses are always there, if that's what the government wants I think it's less efficient, what needs to be improved is how to create new jobs with standard salaries so that when inflation comes, people no longer shout and grumble about the prices of basic goods getting more expensive and will be covered by the money from the salary.

I like the country of Brunei Darussalam until now the people have no problems and they live normally and calmly.

In general inflation is caused by too much fiat money circulating in society, and this causes the value of the currency to fall. However, there are other factors that can cause inflation, such as national debt. I think using gold as a transaction tool is not a smart solution to avoid inflation because gold is not a transaction tool but tends to be an investment.

It is not necessary because it will cause problems for society and often inflation makes everything more complicated and in the end society bears the risk.

The value of fiat currency will continue to devalue that's why we are advised to take it to a more productive place. Like trying to do business or invest because saving money will not provide added value for the future.

Gold is different from fiat currency, the strength of gold can be seen when the economy is in trouble and gold can be stable to maintain its value. Directly the government also does not want inflation to occur because it can affect the stability of the country, but all policies that are implemented are sometimes not implemented properly.

If inflation is used as a tactic, then many countries will experience problems, unless a country tries to have an economic impact on other countries. They will try to suppress the currency of a particular country with existing policies and if a country's currency weakens then it will be quite risky.

Inflation at 2% doesn’t cause people to stimulate the economy and help it grow. In certain countries like Swiss or Japan they had negative interest rates in the past where you are being charged interest to hold it in the bank. That is a way to get people to spend it, not low inflation numbers.

We cannot deal life without inflation. Governments need to issue bonds to pay for the country to run and as a result that money comes from money being printed out of thin air. It’s impossible for a country like the US to function without raising money from selling bonds, they hold too much debt.

I think currency can not be the same as you think because those countries that are productive wouldn't have the advantage of their products and while it will be in favour of consumer because they will have access to the products very easy and cheap, in our country inflation is our major challenge because we are not productive so everything we used are all import that why we are battling with inflation, our currency keep losing value everyday and our government are just watching all this to happen because the said they are helpless, my country are blessed with many minerals resources which alone can be used to stabilise our currency but unfortunately this foreigner have cage us to the extent that even to breath we need to seek permission from them, they always came to advise us on the economy as if they are not battling there. I don't think governments can't do anything to take away inflation because they are not the one controlling it.

As far as I know, inflation in a country has pros and cons. In pros, if the government of each country sees that the inflation level is low or moderate, it can help investors to invest, and when that happens, it can contribute to the country's economy.

When it comes to the cons, when inflation rates increase, the usual thing that happens is that the value of money decreases. where the consumers buy fewer goods. And business people might hesitate to invest for awhile because the cost is high. And when this is the case, it can hinder the growth of the economy.