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Originally Posted by ncboiler
Unrelated....kind of. I hear inflation is good. The economy needs inflation. Why is this? So what they are saying is that the dollar bill is the one thing you want to own to be worth less tomorrow than it is today? Is there another example of something we posses where we want this to be the case?
Inflation is good only because deflation is terrible. Deflation makes borrowing money really expensive. For a variety of reasons the inflation numbers you hear are overstated. So based on the CPI (consumer price index) if you hear inflation is 2% that means that it's probably actually a lot closer to 1%.
So inflation is bad for you in the sense that carrying cash costs money, but it's good for you in the sense that things in the overall economy would get ****ed (which would also be bad for you) if we got deflation and stuck in a deflationary cycle.