| ▲ | tharmas 7 days ago | |
>more money in the economy drives inflation Not necessarily. Sure, it that money is chasing fixed assets like housing but if that money was invested into production of things to consume its not necessarily inflation inducing is it? For example, if that money went into expanding the electricity grid and production of electric cars, the pool of goods to be consumed is expanding so there is less likelihood of inflation. | ||
| ▲ | verdverm 7 days ago | parent [-] | |
> if that money was invested into production of things to consume its not necessarily inflation inducing is it People are paid salaries to work at these production facilities, which means they have more money to spend, and the competition drives people to be willing to spend more to get the outputs. Not all outputs will be scaled, those that aren't experience inflation, like food and housing today | ||