443
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 22 Jul 2023
443 points (96.6% liked)
Asklemmy
43916 readers
1262 users here now
A loosely moderated place to ask open-ended questions
Search asklemmy ๐
If your post meets the following criteria, it's welcome here!
- Open-ended question
- Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
- Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
- Not ad nauseam inducing: please make sure it is a question that would be new to most members
- An actual topic of discussion
Looking for support?
Looking for a community?
- Lemmyverse: community search
- sub.rehab: maps old subreddits to fediverse options, marks official as such
- !lemmy411@lemmy.ca: a community for finding communities
~Icon~ ~by~ ~@Double_A@discuss.tchncs.de~
founded 5 years ago
MODERATORS
I've been taught that inflation deincentivizes hoarding wealth too, but seeing how wealth is still hoarded, I'm not convinced it's an effective tool.
That's the difference, they hoard wealth and not currency. The value of assets do not go down when currency loses its value with inflation.
Wealthy have little to no cash that would lose value with inflation, they just buy everything on credit and have their wealth tied to assets and investments that probably gain value at least at the pace of inflation.
It's still true that a deflationary economy would be a mess though. If we had deflation, the rich wouldn't even bother investing and would literally just sit on a pile of gold like Smaug. I know trickle-down doesn't work but an economy where nothing circulates would be hellish.
Wealth is hoarded; cash is not.