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Why is inflation desirable? (lemmy.world)
submitted 12 hours ago by to c/asklemmy@lemmy.world
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I've been wondering this question for a while. Ignoring current events, why is a little bit of inflation desirable?

I do understand that it's done to "stimulate" the economy so people don't let their cash rot in a checking account, but isn't it a zero-sum game? Everybody says that money is not meant to stay where it is, rather, should flow through the economy. But if the economy always needs injections of liquidity because otherwise it fails, isn't the economy broken?

I feel like there's something I can't comprehend about that.

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[–] 1 point 26 minutes ago

I still don't see what is being kept away from everyone else. Who is left without if I own a billion worth of stocks in different companies? The cartoon example would be me finding a cool rock that suddenly everyone in the village wants and I even get astronomically high purchase offers from the neighbouring villages but I choose to keep the rock to myself effectively making me the wealthiest person of the village - on paper. Is the rest of the village being deprived by that fact that I refuse to sell it and buy everyone a Lamborghini?

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