Re:The Gold Standard and the Great Depression (1997)
by louloulou on Tuesday October 26, 2021 @05:01PM
(#29006212)
> The point stands: CPI inflation is the one that actually affects us.
If your only purpose in life is to be a "consumer", sure. But changes in relative purchasing power between people also distort you're ability to affect the world. Increasing purchasing power of a bank or home owner relative to a saver through policy decisions increases their power to affect the world relative to the saver. This ability to arbitrarily choose winners and losers is not what you want in a monetary system IMO.
Edit: ability to affect the world as well as freedom to act, since you can substitute money for your own time.
If your only purpose in life is to be a "consumer", sure. But changes in relative purchasing power between people also distort you're ability to affect the world. Increasing purchasing power of a bank or home owner relative to a saver through policy decisions increases their power to affect the world relative to the saver. This ability to arbitrarily choose winners and losers is not what you want in a monetary system IMO.
Edit: ability to affect the world as well as freedom to act, since you can substitute money for your own time.