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Jul. 9th, 2015|02:26 pm |
Thank you for the detailed reply.
I am holding my opinion under review when I gather more information.
However, realizing that we are moving on to somewhat other issues, one thing that stood out to me in your reply was: "Low inflation is, of course, preferable for the lending class as it keeps the value of the money high".
Now, that, of course, is true. However, when we consider alternatives I think low inflation is valuable for most other people as well.
For example, I am able to save a little money every month against a rainy day or in order to purchase something expensive and avoid taking credit. If there was high inflation, the value of my work would depreciate quickly, and I could only buy things I can afford at the amount of a single paycheck or two.
Likewise, if I save some money in advance to have some security for when I fall ill or for my old age, once again with high inflation my effort becomes progressively more difficult, the longer I try to plan ahead, the more frugal I am.
So, unless you happen to be so poor that you can't have any savings at all (and in this case I think the problem is the level of renumeration rather than inflation or lack of it), you seem to benefit by lower inflation despite hardly being able to be called "lending class". Although, as soon as you keep your savings in a bank and invest them in any deposits or funds, you ARE in fact part of the lending class.
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