[darioush]

In actuality fiat currency makes everything a pyramid scheme and allows the government to spend the wealth of the nation in whichever manner it deems fit, since the value of inflation accrues disproportionately to the asset owner (aka people who were there before you, aka pyramid scheme) vs. the earning productive class.

[rat87]

Inflation benifits the borrowers. Fist currency makes thing run smoothly when well managed, alternatives such as the gold standard have proven to be much worse that's why everyone switched

[ffsm8]

Technically true but highly misleading

the borrowers that just have a mortgage for their own house while working for a paycheck don't really benefit from it. Sure, their debt has been reduced, but their wage too. And inflation is generally lower then interest, so that benefit gets wiped too.

The by far biggest winners with inflation are the people that own a lot of assets.

[dpc_01234]

People didn't switch because of stability problems with gold standard. That's just propaganda and fiat apologetics. As a matter of fact gold standard seen fastest and most stable growth in the history of human kind. Gold is hard to transport, secure and divide so ledgers were used instead which allowed government to just end goal standards to fund WW1 efforts, which also shows the magnitude of destruction and statist largese this enabled.

I recommend Broken Money for history and analysis how it came to be that things are how they are.

[rat87]

They literally did. They didn't want to go off the gold standard but they did because there was no choice and soon after each country went off the gold standard they started recovering from the great depression.

https://www.reddit.com/r/science/comments/18tl490/abandoning...

The gold standard caused financial crash after crash

[darioush]

This is true but the government is the biggest borrower, who then immediately spends the funds by "awarding" contracts, obviously they don't have any corruption or favoritism when they do this, nor do they place trades using their insider knowledge of how the funds will be appropriated, which will definitely never impact the average citizen borrower (who is probably in need of borrowing money to buy a house, which is so expensive because... inflation)