I’m not sure what OPs argument is, but maybe it’s something like, if we have very high inflation the rich will actually lose money as their savings have less value. While at the other hand wages go up.
This argument is flawed, as the rich usually don’t have savings, but investments. Those will actually just go up with inflation. Like if you invest in stocks, gold or houses, all of those will go up in times of high inflation.
So printing money is just going to screw the middle class with some savings in the bank. It’s also going to screw young people that don’t own a house.
No, it’s Modern Monetary Theory which is that all debt creation de facto creates (“prints”) money, so unless you cease all loan creation you’re always printing money, and thus it should be more accepted to use debt to invest in long term projects.
Mmt principals (nr 3) Is limited in its money creation and purchases only by inflation, which accelerates once the real resources (labour, capital and natural resources) of the economy are utilized at full employment
So you can’t really always print more money, unless you don’t care about inflation (that mostly screws the middle class).
But you can print more money while labour, capital, and natural resources are not fully utilised - which is a lot more than it is generally done at the moment.
I’m not sure what OPs argument is, but maybe it’s something like, if we have very high inflation the rich will actually lose money as their savings have less value. While at the other hand wages go up.
This argument is flawed, as the rich usually don’t have savings, but investments. Those will actually just go up with inflation. Like if you invest in stocks, gold or houses, all of those will go up in times of high inflation.
So printing money is just going to screw the middle class with some savings in the bank. It’s also going to screw young people that don’t own a house.
No, it’s Modern Monetary Theory which is that all debt creation de facto creates (“prints”) money, so unless you cease all loan creation you’re always printing money, and thus it should be more accepted to use debt to invest in long term projects.
On Wikipedia it says
Mmt principals (nr 3) Is limited in its money creation and purchases only by inflation, which accelerates once the real resources (labour, capital and natural resources) of the economy are utilized at full employment
So you can’t really always print more money, unless you don’t care about inflation (that mostly screws the middle class).
But you can print more money while labour, capital, and natural resources are not fully utilised - which is a lot more than it is generally done at the moment.