/biz/ - Business & Finance

>>59146625
When you debase a currency, of course nominal profits will increase, as there is more money floating around in general. Adjust those profits for inflation and they don't look so hot.

And anyways, corporations are inherently greedy. They will always try to charge as much for a product as they think they can get away with. Yet historically the only times you see wide scale price increases is either when the government is expanding the money supply, and/or a war is messing up production. Consider the whole "Gilded Age" the US, that started in the aftermath of the civil war; big corporations began to dominate the economy in ways they never did before, and were willing to do all sorts of shady tactics to boost profits. Yet prices remained stable during that period. Largely because the US gov maintained a stable gold based currency; even corps that were willing to send in Pinkertons to bust up strikes, or lock workers inside fire traps to prevent theft were unable to do significant price increases in that monetary environment.

>>57114621
This here; sudden, sharp deflation is certainly a symptom of other things in the economy being fucked up, but there is nothing wrong with gradual deflation. Between the end of the US Civil War and the creation of the federal reserve in 1913, the US had both gradual deflation and massive growth in industries & standard of living. The UK, Germany, and several other Euro countries had much of the same going on during this time frame.

Before the federal reserve was created in 1913, the US basically had no inflation. Yet obviously it was much wealthier and more developed in 1913 than it was when the country is founded. Real economic growth is created by building actually useful infrastructure, new technology that improves production, and most importantly, raising more children that are smart enough to build and develop that infrastructure and tech, printing more money is simply unneeded.

>>51615354

Deflation isn't bad. Retards have been brainwashed for the last 100 years to think it's bad. They are literally incapable of imagining a system where goods, services, and labor get cheaper, yet your savings grow in buying power.

Inflation is way worse because it literally causes everything to get more expensive and destroys the purchasing power of savings. It encourages taking on debt. It fucks over people that want to save money to buy a home, start a buisness, or send their kids to college. It also encourages governments to expand, increase deficit spending and it allows for corporations and banks to get bailouts and subsidies. Inflation is cancer.