Re:Happy 400th birthday to the world's oldest bond
by chgs on Tuesday December 24, 2024 @10:58AM
(#42502723)
Let’s say you have an economy of 100,000 units of work done in a year and thus is backed by a fixed supply of $100,000
You do enough work for 1/100th of the economy and receive $1000. You keep this in a box and do nothing for years.
In years time the work done in the economy is 1 million units, but money hasn’t changed. Your $1000 can no purchase 1:100th of the economy you haven’t built, or 1,000 units of work
You receive 900 units of work for free.
That’s immoral.
You have missed the point.
Inflation encourages activity because your money is worth less a year from now. Better to get something for it, or invest it.