And so, if the youth care more for the environment than they do about money, and if ageing parents care about their money more than they do about their children, then generational looms. However, one possible way to defer this clash involves the oldest trick in the book. And that is more money for everyone; for the GND, for Medicare, Medicaid, Soc Sec, tax cuts. Enter MMT....Zero Hedge
Hedge Fund CIO: "Generational Conflict Will Be The Top Theme Of The Coming Decades: Enter MMT"
Tyler Durden
One thing certain in a fiat currency system is that money’s value diminishes over time, he thought. ZH
ReplyDeleteShould fiat gain value instead? So that money hoarders need do nothing with their money for it to gain value? As if that's a recipe for progress rather than for stagnation and exploitation of the young?
The problem isn't that fiat loses value over time - it should - but that new fiat is not distributed justly, i.e. by:
1) deficit spending for the general welfare
AND
2) equal fiat distributions to all citizens, i.e. a Citizen's Dividend.
Instead, we have new fiat distributed as welfare proportional to account balance such as Interest on Reserves and positive yields on other inherently risk-free debt of monetary sovereigns.
Nor may the entire population USE fiat to any large extent which depresses the demand for it in favor of private bank deposits.
Well said, Andrew.
ReplyDeleteAndrew makes an excellent point IMO: "Should fiat gain value instead? So that money hoarders need do nothing with their money for it to gain value? As if that's a recipe for progress rather than for stagnation and exploitation of the young?"
ReplyDeleteAgreed. For instance, if the value of the currency is considered in terms of labor time (as in MMT), then for the currency's command over real resources to remain stable (i.e. for the price level to remain stable), the value of the currency needs to fall to counter the effect of rising productivity.
Over time, rising productivity means goods and services are produced in less labor time, which puts downward pressure on prices. So if a unit of currency were to remain the equivalent of an unchanged amount of labor time, that unit of currency would command more real resources than before (to the benefit of the hoarders).