Message from @Poppy Rider
Discord ID: 489532196231708672
go on
The harm would arguably be in printing more money
Not in Hoarding it
Sorry BTW for dropping such a heavy topic and responding in blurbs. I got called for a delivery...
Unless you make a currency that can be infinitely devisable then yes. The population is going to grow so either the supply needs to grow or the value needs to grow.
If you hoard it, then value of each dollar goes up. At some point, in order to keep hoarding it, i'd need to produce everything i need myself, because otherwise i will need to pay out more than i get in because of the value increase of each piece of money
You did make an argument that lead to inflation, but I think the dispute is in causation
each piece of money i hoard, increases the value of traded money.
Grenades picking up what I'm laying down.
and i can only hoard money if i produce more than I consume, value wise, or i don't consume.
which means i need to produce more for each piece of money i hoard
Bingo
or, i need to stop consuming
You are talking about deflation.
basically
Can someone tell me whats wrong with deflation?
Depends on your goals
the only problem becomes how small you can divide your currency
but this is the problem of currency, its imaginary placeholder for the real value of stuff
If you want to spur growth it's bad, but I'm not convinced artificial growth is good
And?
It's called trade. After a year of deflation you will quickly find out you can't afford anything from the people over the river.
Why?
hang on. I know this one.
>stores will sell products nobody is buying
I don't understand
you can go down to there being only 1 dollar in the system, people will just rip the dollar in 2, now you have 2 half dollars
or someone will start using something else as a new currency, or just trade directly tit for tat
Sorry I've that wrong up there.
the worst that can happen is everyone is just focused on providing for themselves and no-one else.
I used to know all this stuff.
So does anyone fully disagree or did I make my case? (I didn't go into specifics even, yet)
I'm not convinced. You are just going to lower the money supply. Why would I spend today when it's going to be worth more tomorrow? I just makes the problem worse. Unless you print money to fill gap. Where that gap be caused by hording or population growth.
do you have enough to afford not spending today?
and will it be worth more tomorrow? everything will be more expensive tomorrow too
maybe it will be worth more tomorrow, but you will get less in return
what you currently own will be worth more, but your income will be less because each dollar will be worth more
Grenade making my arguments for me.
its just logic
money doesn't have value, it is a place holder for value