“T-bills of course are risk-free”

How are you so sure?

If its because an American default is unimaginable, then that’s “presentism” - assuming that whats true today will continue to be.

If its because the US could just print its obligations, than Id argue that the Tbills are not risk free since one would only get the nominal value back

> If its because the US could just print its obligations, than Id argue that the Tbills are not risk free since one would only get the nominal value back

Depends. The US could honor the T-bills owners at the expense of currency holders.

And what of wages that don't increase along with the standard of living?

The only reason we feel like our standard of living is okay right now is that the economy has grown substantially over the past few hundred years, but our (being peasants) share of it has decreased dramatically.

Inflation is good. We want the dollar value to decrease over time, because it encourages spending. If people keep their dollars (thinking $1 will be worth more tomorrow, than today), then it hurts jobs and growth.

Why is this bad?

People get hungry and need to buy food. Shoes and clothing become worn and eventually need to be replaced (unless if people are willing to put up with decreased quality of life). Eventually people need to spend money, even if it may take longer than when there is inflation.

Because people don't like taking short term risk for long term benefit. It's the same thing with climate change. They'd rather do nothing and keep things as they are, even if that is impossible and the problems get worse.

The duration of a tbill is up to 1 year so this not too surprising