[dlp211]

We (mostly) don't create money out of thin air. We borrow it. This obligation acts as a limit on money supply inflation.

Also, slight, but mostly consistent inflation is far better for everyone than what the US went through in it's first 150 years as a country.

The average American household is worth more than $1MM and the median is close to $200k. All time highs, even adjusting for all the inflation.

https://dqydj.com/net-worth-by-year/

[ClumsyPilot]

> We (mostly) don't create money out of thin air. We borrow it

This is the same thing - when you go to the bank to get a loan, the money is created out of thin air. It simply appears in a database. It is not the money someone has deposited in the bank. The only reason the bank has to keep reserves is for stability in case of bad loans.

[csomar]

> This is the same thing

It is strictly not. All money is borrowed. This seems like free/unlimited printing when the interest rate is 0%. But when the interest rate rises, this has real consequences and you can't print your way out of a 5.5% interest rate.

This is why US politics got heated about finance as of late. If inflation doesn't come down, the US will have to "print" that money. Essentially rendering the Fed to the likes of Pakistan, Turkey and Argentina.

[user90131313]

Problem with inflation in every country is not that it needs to be above 0. It's actually much higher than they publicly say. With not giving you real numbers, they lie officially to get richer. Intentional

[rvba]

Why would small inflation be good for anyone bar the centtal bank? Small inflation is ignored by everyone. If there was no artificial inflation (central bank racket) you could ignore it as well.

[dog_boxer72]

Inflation encourages investment because if you just sit on your money it gets eaten away by inflation. Once you’re Oprah-rich inflation is the rate at which you’re losing net worth. This is my non-economist understanding.