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by dag100 31 days ago
But, ideally, with each day, more useful products and services are being made and delivered. It'd be useful to have extra dollars around to account for more stuff being made and more things being done. Thus having more dollars in existence doesn't necessarily mean the value of a dollar is decreasing.

What does cause inflation, however, is when more dollars are printed versus things being made. You can't precisely measure the latter, so you have to make do with price indices and such. Which makes inflation hard to actually gauge, especially when everyone expects more and more to be produced every year (i.e. they expect their savings and investments to appreciate/gain interest) so you have to print more dollars to at least keep up the facade.

1 comments

problem is majority of the new printed fiat money goes to VC funded labs and few stocks (selected by inv. bankers). new dollar does not mean average person gets more products and services. Your accessability is no longer because wealthy top does not let other companies and people to get benefit of it. aka financial eng. This is a new era. IPOs make you lose money, they push to valuation to trillions so you dont get no real return. they use your retirement funds to hedge their stocks. ALL LEGALLY. back then apple or nvidia or google gave public few 100x or more.