Hoarding currency is a very stupid way of saving.
Saving is a tax on workers: you work now, but instead of buying a car right away with your salary, you buy it only months or years later; in the meantime someone else uses that car. That may benefit capitalists, but what drives capitalism is productive investment in factories etc., and what makes the capitalist economy spin is spending, not saving.
Please explain how saving is a tax on workers.
What drives capitalism imho is indeed as you say 'productive investment'. I don't see how 'spending, not saving' gets in there. In order to have something to invest, you first need savings. Delaying your spendings on consumption goods to invest in efficiency improving production methods etc. allows for the creation of more or better quality goods, or with fewer work involved, so later you can get more shit for the same amount of effort. Spending everything right here, right now achieves just the opposite.
Inflation is a diffuse tax, whereby government takes from society an amount equal to the amount of currency that exists times the inflation rate. Each person pays that tax proportionally to the amount of currency that he has and how long he keeps it before spending it.
Yes, but don't middle class people typically have a larger percentage of their savings in fiat in a bank account, compared to wealthy individuals, making it an uneven tax? For a wealthy individual it makes more sense to spend a large amount of his time investigating how best to invest his capital in various things, like housing, companies, art etc.. On the other hand, spending days to figure out how to get 0,5% more on your 300 dollar savings doesn't make much sense, so you might as well park it in a savings account.
Like any tax, inflation tax not inherently evil: a good government should give it back to society as public services and infrastructure. A bad government may waste it (for example by rescuing failed banks), or use it for evil ends, but that is a separate problem. But it is debatable whether inflation tax, as way to support the government, is more fair and effective than revenue tax, consumption tax, etc.. Experience seems to say it isn't: countries that abuse it generally have lousy economies. Anyway, it is not a simple, black on white issue.
Agreed.
