[colanderman]

In that it conveniently masks wage stagnation or recession, sure. But I'm not sure I agree with you otherwise, can you expound? Deflationary systems are great for capitalists. (See: NYC's taxi medallions and SF real estate.)

[freejulian]

Having to fight with your employer year after year for the same wage? Working class unable to effectively save because interest rates are well below the rate of inflation? Unable to reason about what's a reasonable price because the central banks keep manipulating your measurement stick?

It's not a coincidence that wages decoupled from productivity around the same time the US got off the gold standard.

It's also not a coincidence that endless wars have only been made possible by the governments ability to print money (back when funding of a war was explicit via taxation people actually cared).

I'd love to hear your reasons why inflation is good for me -- someone with little money simply trying to save for a home which is increasingly out of reach each year.

[roenxi]

I don't like inflation and a lot of the points you raise are things that are a problem, but you are raising them in a context that suggests 'it is a class war the capitalists want it this way'.

Most of the points you are raising aren't about capitalists, they are just about entrenched power structures. Capitalists are a different group of people (eg, small business owners). You should find someone else to blame :P.

> Having to fight with your employer year after year for the same wage?

Real wages tend to whatever the market clearing price is. Deflation isn't what makes employees have to fight to keep the same wages, it probably some combination of real factors like:

* Competition from cheap overseas labour

* reduced need for labour in the supply chain

* General increases in supply of labour that exceed growith in supply

Inflation makes it easier to miss, but the capitalists don't really benefit in any meaningful way here.

> Working class unable to effectively save because interest rates are well below the rate of inflation?

Nobody benefits from this. The way our the modern (>1960s) political climate is, the capitalists will end up paying for welfare for the working class to suplpiment their low savings.

> Unable to reason about what's a reasonable price because the central banks keep manipulating your measurement stick?

Affects everyone, not necessarily to the advantage of anyone.

[tensor_rank_0]

well when you can fund giant capital expenditures with debt, you can buy up enough resources to build a company with current dollars, and pay for them with future (inflated) dollars. from this perspective, inflation is basically a discount on the interest you pay on your loan. inflation is good for debtors. contrariwise, deflation is good for savers.

[colanderman]

Deflation is good for savers if your savings is in terms of currency. Most people with "retirement" savings have them in a 401k, which isn't the greatest due to management fees, but at least it's roughly shielded from inflation.

[tensor_rank_0]

savings is for more than just retirement. there are transaction costs associated with breaking into retirement vehicles in order to meet emergency obligations.

more importantly, inflation discourages savings, because you have to invest your savings just to stay ahead of inflation. investment and savings are different categories, its financially unwise to conflate them.