However, as a side note, inflation is absolutely essential to keep the economy healthy. Most developed countries around the world have a goal of 2 percent inflation. US inflation is currently 3.7 percent before seasonal adjustments.
Edit: Wow. Lots of people here who need to retake Econ 101.
Inflation is important because it punishes the hoarding of wealth and encourages spending. When investments grow greater than inflation but wages grow slower, it’s problematic because the investing class is rewarded for having money while the working class is punished.
However, as a side note, inflation is absolutely essential to keep the economy healthy. Most developed countries around the world have a goal of 2 percent inflation. US inflation is currently 3.7 percent before seasonal adjustments.
Edit: Wow. Lots of people here who need to retake Econ 101.
Inflation is important because it punishes the hoarding of wealth and encourages spending. When investments grow greater than inflation but wages grow slower, it’s problematic because the investing class is rewarded for having money while the working class is punished.
Most lemmings have never taken econ 101, because they are in middle school