When you earn money in 1800 and use it in 2021 then a baker in 1800 failed to get your money and his time was wasted. He could have used that time to bake bread but you didn't buy bread. Now that it is 2021 you are asking the baker to bake twice as much bread for your sake even though you did nothing to help the baker run his business. In fact, you did the opposite. Turns out there are less bakers in the future and your money becomes worthless anyway.
>This Keynesian argument comes from a nihilistic disregard for social structures, the environment, and future generations. Look him up. “In the long run, we’ll all be dead” - Keynes
Is this supposed to be a joke? How are old people becoming rich through no work, no productive investment whatsoever supposed to help future generations? Future generations receive greater incomes than their previous generations thanks to inflation. With deflation they receive lower incomes than their previous generations.
When you own deflationary money and you do nothing with it you basically create a claim to future work in the past. By working at a simple 1800s job you have created a claim to the labor of someone working a software job even though you took no part in enabling that job to exist in the first place. Same with the bread baker robot. By holding onto the currency you never created an economic environment that enabled such an investment to be made. You just held onto the currency and once someone was foolish enough to build the robot you obtained a claim to its productivity.
These are all valid arguments in the extreme. As are all arguments about inflation in the extreme.
There is actually no difference between inflation and deflation. For every inflationary asset basis, there is a deflationary asset basis. Flip bread/money in your own text and you see the problem.
The only difference is taxes. Tax basis could be anything. Let’s say, SHA-256 hashes. Every year, the hash value of your dollar investment account quadruples. You need to pay for half of those gains, or else you go to jail, and if you resist, you can be legally killed. The price of food and shelter is irrelevant to me. Pay me. Can’t? Okay, we’ll collect tax in Bitcoin, but we’ll have to raise the tax rate to 90%. We can go back and forth on this as much as you want. In the end, I guarantee the guy with the legal right to kill you ends up owning everything.
In conclusion: inflation and deflation are both the same thing, and they both suck.
>This Keynesian argument comes from a nihilistic disregard for social structures, the environment, and future generations. Look him up. “In the long run, we’ll all be dead” - Keynes
Is this supposed to be a joke? How are old people becoming rich through no work, no productive investment whatsoever supposed to help future generations? Future generations receive greater incomes than their previous generations thanks to inflation. With deflation they receive lower incomes than their previous generations.
When you own deflationary money and you do nothing with it you basically create a claim to future work in the past. By working at a simple 1800s job you have created a claim to the labor of someone working a software job even though you took no part in enabling that job to exist in the first place. Same with the bread baker robot. By holding onto the currency you never created an economic environment that enabled such an investment to be made. You just held onto the currency and once someone was foolish enough to build the robot you obtained a claim to its productivity.