>>23594845
keynsianism or keynsian-adjacent theories (MMT) have been dominating policy for close to a century because they grant governments a pseudo-scientific framework that justifies intervention and thus increases their power and authority
a few decades ago they even changed the definition of inflation, decoupling it from the money supply and making it sound more neutral rather than something inherently negative
their rationale is that if inflation goes too low or negative, you may experience a deflationary death spiral. this has never ever been witnessed in history nor do the mechanics that explain its cause and effect make sense, but it's not supposed to make sense, it's just supposed to sound technical and smart enough to make the massess not bother
so because this disaster of "deflation" (things getting cheaper) being constantly on the horizon, governments have the moral authority to micromanage the economy through central banking to keep inflation at an "appropriate" level. in the past that level was around 0-2%, now 2% is treated as the bare minimum because politicians got addicted to easy money
there is no political solution to this (within democracies at least) because inflationary policy rewards you right now in exchange for long-term damage. you can go all out and do your thing knowing that the full damage of your policies may take up until the next 4 year term to fully manifest
even if you decide to be prudent, you will be competing with demagogues who will be accusing you of being a pro-austerity misanthrope, who will attribute price increases to "corporate greed", "speculators" or "foreign enemies" and will be promising the population consequence-free growth
the key thing to always understand is that inflation is functionally a tax (on savings and on the nation's long-term prosperity), but it's very easy to hide and yields very good short-term results
11/11/2025, 8:05:21 PM
No.23594736
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