> As that [gold standard] just means things will be prices fractions of fractions, and the pay will be likewise.
The issue isn't how much one unit of currency is worth, but how its value degrades over time and where newly-created money introduced into the economy.
The first concern - it's lower-middle class people that want to save in simple currency, because the transaction and management fees are relatively larger. And so inflation represents a direct drag not on their month-to-month budget, but on their ability to save up economic bargaining power for the future.
The second concern - when creating new money, we would expect areas where that new money is spent to inflate quicker than areas where it is not (conversely, if we printed a new $10T and dropped it in a deep sea trench, we would see zero price inflation). Newly created money is seen by consumers for things that can be financialized - housing, cars, education, healthcare. This has the effect of replacing capital assets with monthly rents - the banks don't actually give out newly printed money, but merely lend it. This discourages these expenses from ever being paid off, leading to decreased economic power due to higher burn rates.
The issue isn't how much one unit of currency is worth, but how its value degrades over time and where newly-created money introduced into the economy.
The first concern - it's lower-middle class people that want to save in simple currency, because the transaction and management fees are relatively larger. And so inflation represents a direct drag not on their month-to-month budget, but on their ability to save up economic bargaining power for the future.
The second concern - when creating new money, we would expect areas where that new money is spent to inflate quicker than areas where it is not (conversely, if we printed a new $10T and dropped it in a deep sea trench, we would see zero price inflation). Newly created money is seen by consumers for things that can be financialized - housing, cars, education, healthcare. This has the effect of replacing capital assets with monthly rents - the banks don't actually give out newly printed money, but merely lend it. This discourages these expenses from ever being paid off, leading to decreased economic power due to higher burn rates.