Key Points
- As shoppers await price cuts, retailers like Home Depot say their prices have stabilized and some national consumer brands have paused price increases or announced more modest ones.
- Yet some industry watchers predict deflation for food at home later this year.
- Falling prices could bring new challenges for retailers, such as pressure to drive more volume or look for ways to cover fixed costs, such as higher employee wages.
Some inflation is necessary to prevent wealth hoarding. It’s one reason we moved away from the gold standard.
Minimum wage needs to be tied to it though because we’re still seeing a huge amount of wealth disparity which is exactly what inflation is meant to solve.
Inflation doesn’t prevent wealth hoarding. In fact it benefits non-cash assets which the rich hoard plenty.
That’s an issue with non-cash assets (like cash was when we moved away from the gold standard). And why Bernie suggested they be taxed heavily.
But the intention of inflation, was to prevent the hoarding caused by the gold standard.
How does reducing the value of cash prevent hoarding of gold (which would be worth more cash then)?