Derek McDaniel
2 min readAug 8, 2021

--

Okay, I don't want to have a huge argument, but the idea that inflation is theft is just wrong. No one is forcing you to hold dollars. The amount of inflation between the time you get your paycheck, and when you can spend or invest it, is extremely small, if not zero.

In fact, even with modest inflation, money is essentially a low cost way to store massive amounts of value. Imagine if you tried to save value in the form of bread, or even as books.

Most forms of value don't stay valuable for long. Either they require upkeep storage, or maintenance costs, or they simply fall in price, until they are no longer rare.

Money is by far the easiest way to store large amounts of value. Every other form has storage or maintenance costs. The total value of all the gold in the world is currently $10 trillion. The total value of all cryptocurrencies is currently $1.7 trillion.

Meanwhile, the total value of U.S. Treasury bonds is $28 trillion. Japan has bonds valued at over $12 trillion, more than all the gold in the world.

Finally, yes printing money can create value. This is because, when money is printed, it is used to buy things. It is used to buy houses, and cars, and invest in factories, etc. If you gave away as much money as people wanted for free, then yes it would quickly become worthless. But without issuing money, factories would spend more time idle, fewer houses would get built, fewer cars and clothes would be manufactured. Without creating money, you would be limited by what people can buy on their credit cards or with other forms of debt. It is much better to simply create a little bit more money, then have everyone go into debt and therefore have to pay interest.

History has not shown that governments are incompetent. Before we had stable governments, we had this thing called "war". I wonder if you have heard of it? People would fight and kill one another to try to take resources from each other. As larger forms of government have developed, and the role of government has become more clearly defined, war has correspondingly diminished.

Now, governments aren't completely efficient at everything. Sometimes there is bureaucracy involved, or excessive politics. But buy and large, the existence of governments makes the world a more stable functional place to live in. Good luck out there.

Governments aren't playing gods, they are just trying to hold people accountable for the most basic stuff that affects all of us.

--

--

Derek McDaniel
Derek McDaniel

Written by Derek McDaniel

Technology, programming, and social economy.

Responses (1)