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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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[–] 5 points 11 hours ago

Sorry for the pedantry: zero sum means it creates winners and losers, because you can only give someone more by taking it away from someone else. “Not a zero sum” means you can create winners only, because you can generate value to give someone without taking it away from anyone else. Economy is never zero sum: a bad economy is bad for most, and a good economy is good for most. Cronies exploit poor people in both good and bad economic circumstances.

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