You don’t actually want that. It encourages people to “invest” by sticking hard cash in a mattress. It rewards people for doing absolutely nothing but taking money out of the economy.
Ideal (if we’re keeping a monetary exchange society, anyway) is low (<3%), predictable inflation combined with wages increasing in proportion to productivity. We had a period of relatively low inflation followed by a giant spike, plus wage gains that are nowhere near matching productivity gains over the last 50 years, and that’s where things hurt. Capitalism doesn’t seem capable of this, however, as it’s always chasing the next hype cycle that leads to these spikes and lulls.
You don’t actually want that. It encourages people to “invest” by sticking hard cash in a mattress. It rewards people for doing absolutely nothing but taking money out of the economy.
Ideal (if we’re keeping a monetary exchange society, anyway) is low (<3%), predictable inflation combined with wages increasing in proportion to productivity. We had a period of relatively low inflation followed by a giant spike, plus wage gains that are nowhere near matching productivity gains over the last 50 years, and that’s where things hurt. Capitalism doesn’t seem capable of this, however, as it’s always chasing the next hype cycle that leads to these spikes and lulls.
As opposed to what we have going on right now, which is to punish working class people so ruling class people can still have prosperity.