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Why is inflation desirable? (lemmy.world)
submitted 11 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 6 hours ago*

yes, because that's how we have organized things.

we could make housing a commodity, but we have chosen not to do so. we have made it an investment. not every economy in the world works this way, or has, historically.

and generally we rampantly resist the idea of commodifying housing, education, healthcare, and other resources. but we're OK doing it in other areas. these are largely political and social choices about what we perceive as having value and how that value should function and how those goods should be distributed.

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