this post was submitted on 26 Nov 2023
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[–] pixeltree@lemmy.world 9 points 11 months ago (2 children)

A small amount of inflation is healthy. You REALLY want to avoid deflation, because that means the value of your money is increasing. If people know their money will be worth more in the future, they won't spend it, incentivized to save and sit on it. That means on average everyone spends less, slowing the economy down and starting into a recession/depression.

Gonna slap this with the good old "I am not an economist" disclaimer, juat what I remember from economics class in high school

[–] sukhmel@programming.dev 3 points 11 months ago (1 children)

Only problem that right now people also may decide against buying because they can't afford it. Also, I'm not sure world is producing goods at a healthy rate either, more like we've got a bit of an overproduction

[–] pixeltree@lemmy.world 2 points 11 months ago

Yeah, obviously wages SHOULD be keeping up with inflation and inflation should be a low, stable amount. That's the problem, not inflation in general.

[–] SCB@lemmy.world 2 points 11 months ago (1 children)

What you learned in high school puts you miles ahead of 99% of these comments

[–] TangledHyphae@lemmy.world 0 points 11 months ago (2 children)

People still have to spend money, hoarding wealth makes no sense if you can't eat and pay for services and utilities.

[–] SCB@lemmy.world -1 points 11 months ago

I have no idea what this is in reference to