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To: jpsb
"yes seems inflation always erodes the value of money"

Correct. The Dollar declines over time, the speed of money accelerates, productivity increases, while our standard of living (think: healthcare, home ownership, stock trading) over time increases.

So money makes for a poor storage vessel for wealth, yet overall, our wealth still increases.

259 posted on 11/27/2004 9:15:32 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack
Correct. The Dollar declines over time, the speed of money accelerates, productivity increases, while our standard of living (think: healthcare, home ownership, stock trading) over time increases.

Economic growth is deflationary. The only way to offset that is for the government to introduce inefficiency into our economy (something the government does extremey well). In order to bring about inflation the government must go beyond the breakeven point, so there is no way that inflation can be said to introduce a higher standard of living. That can only come from productivity increases. There are only so many windows the government can break to stimulate our economy before it causes problems.

299 posted on 11/28/2004 12:51:06 AM PST by Moonman62 (Federal Creed: If it moves tax it. If it keeps moving regulate it. If it stops moving subsidize it.)
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