this post was submitted on 11 Nov 2026

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Why is inflation desirable? (lemmy.world)

submitted 11 hours ago by tired_n_bored@lemmy.world 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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[–] Fallibilist@feddit.uk 1 point 5 hours ago* (last edited 5 hours ago) (2 children)

That is not what I asked about, though. The claim was that they're hoarding money/wealth. This makes it sound like they have a lair full of chash somewhere like Scrooge McDuck.

Musk owns multiple succesful companies. His "wealth" is the value of these companies. You can't buy a house by stating you own SpaceX, they want cash.

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[–] AwesomeLowlander@sh.itjust.works 2 points 4 hours ago

Not sure about the hoarding wealth thing, but

You can't buy a house by stating you own SpaceX, they want cash.

You basically can, since the bank will give you a loan at almost no interest with your shares as collateral.

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[–] alternategait@lemmy.world 1 point 2 hours ago*

You can’t buy a house by stating you own SpaceX, they want cash.

Actually, you can say that SpaceX is worth x million dollars and offer it as collateral for a loan and because its an extremely large amount of collateral you'll get an amazingly low interest rate and never have to use cash for anything. This is pretty much exactly how the Twitter purchase went down.

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