Topic: Is Inflation Necessary - page 3. (Read 1373 times)

Even though people do not always get well with inflation because of how coat of living is high at inflation period. Inflation is still necessary because it also has it own role in every economy. When there is too much money in circulation in any economy, inflation is use as a means of reducing excessive circulation of money in an economy. It is one of the measures used in control the way money goes in and out in an economy. So inflation is necessary.

A little bit of inflation, like around 2%, is actually a good thing for the economy. It nudges people to spend and invest their money because they know it won't be worth as much later. This spending spree helps the economy grow.
But if there's no inflation, or worse, deflation (where prices drop), it's bad news. People start hoarding their cash, hoping it'll be worth more down the line. Nobody's spending, so businesses suffer and the economy stalls or even shrinks.

Inflation isn't always a simple thing to control. It can be triggered by a few different things, like if everyone suddenly wants to buy the same stuff, or if it costs more to make things. Even the government's decisions about money can play a role. And it's not just about what's happening within a country's borders either. The world economy is all linked together, so something like a change in oil prices or trade rules in another country can actually mess with inflation back home.

Think of money like a tool we use to buy things. When inflation happens, it's the value of that tool that takes a hit. Other stuff, like gold, can also go up or down in value, but not in the same way as our regular money.
Gold has been used as money in the past because it's rare and valuable in itself. But it's not perfect. There's only so much of it, and it's not exactly practical for small transaction.
 Inflation isn't a great way to tax people, it's more like a last-ditch effort when a government's really desperate for cash.
Now, there can be some short-term perks to inflation. It might actually give the economy a little boost for a while. But in the long run, if you pump more money into the system, prices will just rise to match. So, it's not like governments are intentionally trying to mess with people's savings through inflation. High inflation is actually bad for everyone, so they usually try to keep it at a manageable level.

Reference

• https://mru.org/courses/principles-economics-macroeconomics/why-governments-create-inflation

we can complain but somehow life must go on, so we as private employees have to change our mindset, where we have to work harder, and look for additional income to cover current living needs, we can feel the cultural shift happening around us, where for example in the past Many people work together to help one of the residents, but nowadays it rarely happens and the few times we ask for help from other people, it will be calculated with money as a reward.

Gold has natural deflation because the supply of gold is less then the world population growth.  Thats despite the great advances in mining power and technology made in the last century, even after that population growth of the world is greater then the supply of gold.   We cannot change the content of the earths crust for gold, its mostly a constant and well distributed across the globe.  Platinum and other metals are not quite the same as that.

FIAT money has no proper controls on it, its mostly politics that decides just how quickly its destroyed and it never lasts is the lesson from history.  Inflation equates to liquidity for some, gold has been used as money and the economy did well during that time so its not absolutely necessary.   Some will argue inflation delays the possibility of recessions but we are trying to balance giant amounts of debt and this is likely the real reason.

And you want to know why this is happening? It's because the USD is the world's reserve currency. Thus, if the USD experiences inflation, so will other countries' currencies. After all, most countries' economies are tied to the American economy. Rising geopolitical tensions will only make matters worse. Unless things go back to normal (end of wars between Russia-Ukraine and Israel-Hamas, end of COVID-19, etc), don't expect inflation to ease off anytime soon. It will keep rising until it's out of control.

That said, I believe Bitcoin is the answer to all of our problems. Unfortunately, governments won't allow BTC to take over the economy. Especially when it's decentralized. If they can't control it, they will reject it (or regulate it). The only reason why most governments are legalizing Bitcoin is because of the tax benefits it provides. But they'll regulate it heavily to restrict people's freedom as much as possible. It's an uncertain future, so we can only hope for the best.

It is true that we are currently feeling the impact of inflation that has hit all countries, but it all depends on how a country responds to it. It should be noted that inflation is a natural phenomenon in the economy that occurs when the prices of goods and services generally increase over time. So in my opinion the state must overcome this in various ways, one of which is by providing targeted and effective subsidies, increasing production and increasing wages for services, increasing salaries for private and government employees, this has a big impact on increasing purchasing power.

Walking a mile in someone's shoes is the best way to truly understand their experiences and challenges. No amount of observation or speculation can replace firsthand knowledge. We should only speak from our own experiences and avoid assumptions or generalizations about others' lives. By doing so, we foster a culture of understanding, compassion, and genuine connection.

How easy it is to say that they can't do something, but it's very difficult to think and understand why they can't do something. Not to progress but the opportunities that high-class people get never get to the middle-class people, the difficulties and problems that the middle-class families face, the upper-level families don't even have an idea about them.

Saving and thinking about the future is like running a marathon for hand-to-mouth people.

Virtually all countries of the world are facing inflation and we should just see it like it is only happening in just our country. Even the most richest and industrial countries are also facing inflation which is something that the government have the power to control. We might need seeing more inflation because things are getting tough everyday. People are losing their jobs due to the invention of artificial intelligence which is still going to dominate and take most people's job and their would not be need to hire people against. Things are really getting out of hand and it's important we take precautions to prevent us from getting frustrated.

All topics related to central banks and other economies play a major role in the economic instability or destruction of a country or the inflation of that countrys currency. So there is no room for anyone to argue against your view that there is no way to hold the central bank solely responsible for currency devaluation or economic malaise. However the central bank plays an important role in restoring and normalizing the economic situation through restructuring the economy. No way can all these responsible central banks escape. In this case the system of government is also interrelated.

Central banks will be held accountable for any mistakes that they do, which is their problem to be fair. If a central bank doesn't solve the issue, it would be responsible towards the citizens directly because in most nations they are independent, meaning that it doesn't matter to elections because people are aware that it's a different organization. President can't just go and print more money, sure there are some nations like that but in most democracies they are two different places.

So, central banks will face pressure and firing and even worse, which means that they have to do their job quite well, and not really ruin a countries economy completely. And to be fair, there aren't that many nations that got worse JUST because central banks, maybe central banks were a part of the problem, but it wasn't the only one.

The fact is they can't do anything that is why they belong to the middle class they have to go along with whatever the condition becomes, but thinking about future at the present itself can give us an escape if we are skillful enough and how to channel our savings into investments instead of just keeping it as money even though its easy to say but in reality it's hard though to keep up with inflation and also save for future and it must be exhausting.

What you say is very true, those whose economic conditions are in the middle class certainly have difficulty meeting their needs because the wages they get from their work will have difficulty meeting their needs, so it is important for us to be able to prepare savings for ourselves. before inflation occurs in order to survive in this inflationary situation.
When inflation occurs, there are some people who can take advantage of this situation to increase their wealth, as you mentioned, those who have saved real assets will certainly be able to benefit from it.

Inflation does nothing but reduces the value of our money that is what held in possession by middle class in their savings so higher inflation will curb the life of middle class and force them to work more to meet their needs which gives opportunities for the rich people to exploit the human resources apart from that inflation makes rich people richer cause they hold their assets in anything like gold, bonds, real estate, luxury items so if inflation hits they are the one will be benefited.

If we look closely, both have advantages in inflation and deflation, but we must first look at the state of the country so that we can carry out inflation, because if the country's economy is not good then the people will be miserable because they will experience inflation. unable to meet daily needs.

Inflation is actually good, but if the economic condition of society is not good it will have fatal consequences for the country, so in this case if the country wants to create inflation it must be prepared for what will happen because this inflation will bring many risks even though in the future there will be many beneficial things that can be learned.

Central banks can influence money supply, but it doesn't mean they don't affect themselves. The value of their fiat currency influences their worldwide economic dominance and stability. Every money printing venture risks inflation. Moderate inflation boosts expenditure, keeping the economy going. What's the true issue? Why are the rich growing richer? Printing money isn't enough; the typical citizen lacks access to financial instruments and markets that leverage inflation

Bitcoin's valuation as a safe haven, like digital gold, makes it deflationary, not merely its supply. What happens when no one spends and everyone holds? Stagnation. More than keeping assets, the economy thrives on transactions. What if we could create a stable currency that encourages spending without depreciation? This demands monetary policy innovation, not merely acceptance of inflation manipulation

Of course, there is quite a variety here from various corners of the world with different levels of problems if we relate it to inflation. If asked whether it is useful, of course there are pluses and minuses, but the biggest minus is that people scream because the price is no longer commensurate with the value of the money they spend.

To maintain the value of the government's authority, the public is only the user because the price of goods/services is determined within their authority. There is no time to use gold or anything else unless it has been legalized and legislated by the government. The last point I think not.

Printing money and fighting inflation are actually not the same and must be done differently by the government, because if too much money circulates in the market without control by the government it will not be very good for a country. Moreover, every citizen has to face inflation, which sometimes makes the citizens suffer a little if the prices of basic goods continue to rise and the value of the currency itself continues to decline.

Meanwhile, the progress of technology itself needs to be encouraged by each country in terms of its development because the presence of technology in the economic sphere can also make it easier for most people who run certain businesses and can also complete their work very well without having to sacrifice more physical energy. And this can also give more people the opportunity to work and open up opportunities for certain businesses by relying on technology that already exists today.

Each Fiat currency is backed by debt. In other words, they're backed by nothing. Back then, the USD was backed by Gold. But the US government had to change this to benefit itself. Inflation only makes the rich, richer and the poor, poorer. Central banks can print as much money as they want without affecting them whatsoever. They're the ones who make the rules of the game. And there's nothing we can do about it.

If you ask me, I'd say inflation is only necessary to encourage spending of Fiat currencies. Making them deflationary will encourage people to hold them more than they would ever spend it. Just like what's been happening with Bitcoin today. Everything done in moderation is good. Inflation only becomes a problem when it's too high. Keeping levels steady will ensure a smooth running of the economy. Hopefully, central banks will fix high inflation rates before it's too late.

I don't think it's a necessary thing, cause the only thing that it benefits towards are those that are already too big to fail financially, the 1 percenters per se.

Plus it fades the divide between the rich and the poor, and not in a good way too, it makes everyone that are not on the extreme upper class of society (the manufacturers, the bankers, the owners and the stakeholders) susceptible to financial loss, given the fact that it makes everything so expensive saving money is just a stupid thing to do cause by the time you already have enough money to buy what you want or need to buy, the shit you're looking to own's already more expensive than what it was initially.

It's not a necessary thing, but it's the natural course of action since every working economy on the planet right now works on a capitalist/quasi-capitalist system. And honestly, until we get a better system of economy I think I can live with this type of setup, not that I have a choice anyway lol.

As the meme guys on tiktok put it, we just have to thug this shit out cause we can't do anything about it anyway. We're just the cogs in the wheel, the consumers in a world ran by producers.

The only currencies that have never lost their value since 1400 years ago are the dinar and dirham. Apart from dinars and dirhams, their value will also be lost, including dollars. Because money made of paper does not have the same intrinsic value as currency.
1 dollar in 2000 might have bought a carton of mineral water, but if you buy it now you can only buy one bottle.
This kind of thing causes inflation to occur, and the government in any country cannot stop this problem except those that use dinars and dirhams.

I think the government is stuck with the agreements with the central bank when the paper currency was formed and accepted it as the country's official currency. Because before the existence of paper currency, only securities were used as a transaction tool. As I understand it, the details can be studied further.