Inflation is a monetary phenomenon. Being against inflation is entirely rational. Inflation almost always outpaces the income growth of the 99%, which means it almost always hurts the 99%. Inflation is used by governments to minimize debt burdens, which arise from spending more than they tax.
Inflation is a supply/demand phenomena. The Fed was invented to inhibit high inflation, and deflation and it's subsequent depressions. Yes inflation cuts debt in real terms, and deflation, worse, increases debt in real terms, which wallops the small guy with his mortgage. We just saw that in the housing sector.
Now I know you think that without the Fed we would have this perfect world, without inflation or deflation. Perfectly flat monetary values. But all you have to do is look back at pre-Fed economic history and you'll see that the cycle swings were way wilder, and when things broke bad the little, and often the big guys, went homeless and hungry. Severe human tragedy.
We haven't had a depression since the Fed, they were common before the Fed. 'nough said. |
