this post was submitted on 19 Sep 2023
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Work Reform

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[โ€“] Jake_Farm@sopuli.xyz 0 points 2 years ago* (last edited 2 years ago) (1 children)

That is something I wonder about. Inflation makes the poor poorer but when asked, economists are like "trust us, inflation is good".

[โ€“] Cethin@lemmy.zip 1 points 2 years ago

A small amount is good. Deflation makes it so not spending money is more beneficial. The longer you wait to spend the more the money is worth. This causes fewer products and services to be purchased, which pays for wages. Inflation makes the opposite true. The longer you wait to spend your money the less it's worth. It encourages spending, not saving. Inflation that outstrips increases to pay is obviously very bad though.