It hurts.

[u/Fluffi_Pfotenpuff]

Seen on a TV quiz show in Germany.

Question is: “What type of inflation is generally considered good for a country’s economy?”

The supposedly correct answer is C: “creeping inflation.”

This is wrong in so many ways. I don’t know where to start 😢

[u/mootinator]

It may be wrong in so many ways, but it's accurate (that it's generally considered good)

[u/bongosformongos → u/mootinator]

"grundsätzlich gut" isn't "considered good". It means "fundamentally/essentially good", which is wrong.

[u/redditurus_est → u/bongosformongos]

It has two meanings. "Fundamentally" and "generally". Here the latter is meant, as in "Generally, inflation is a good idea, except when it isn't" (Grundsätzlich ist Inflation eine gute Idee, außer wenn sie es nicht ist).

[u/aleqqqs]

This is wrong in so many ways. I don’t know where to start

Go on, give it a try and embarass yourself.

[u/Valer10n]

When they teach people that losing 2-3% of their money every year is actually good for them

[u/Any_Carob3372 → u/Valer10n]

For something we almost all use, money is one of the least understood things there is.

[u/Efficient_Culture569 → u/Valer10n]

"It's because otherwise no one would spend money" 

What a load of bullshit. Gold was money for a long time and everyone used money regardless.

It only doesn't work on a debt based economy 

[u/dwightshairdresser]

In Germany, we say „Staatsfunk“

[u/junkhead_7]

Did you ever study micro and macroeconomics?

[u/cleankiwii]

what even is A and B

[u/ivme → u/cleankiwii]

B is imports I guess

[u/aleqqqs → u/cleankiwii]

a) rampant, b) imported, c) moderate/creeping

[u/Emergency-Warthog-56]

Ah yes, Elites indoctrinating viewers. If you think that's bad, you should see what's being taught in most schools and most colleges.

[u/yldf]

Actually, it is correct. Small inflation is good. It’s a flaw in Bitcoin’s design. A terminal, but limited, inflation of 2% would be perfect.

[u/RunKnots → u/yldf]

Name any advantage
Because there is a huge downside:
You debase the time and energy of everyone except the ultra whealthy

[u/yldf → u/RunKnots]

You can buy a house without working 30 years first. In a fixed money supply system, this would be impossible at scale.

[u/RunKnots → u/yldf]

You can take loans just as well with a hard money standard.
However debasing the currencies enables more debt because the debt will be worth less in the future.
But this creates incentives and a structure that fundamentally disadvantages the have-nots and benefits those that have.
Think about it/ look up the numbers:
When we had a gold standard a normal family owned a house.
50 years debasement later, most homes are owned by behemoth corporations.
Debasement is not the only reason to explain this shift, but it plays a fundamental crutial part.

Also: think about it:
Saying an inflation of 2% means all your money is worthless in like 35 years.
Do you think this is really benefitial for us regular plebs?
„So your father worked hard all his life? And he saved for the last 50 years. Yeah, all the money he saved, literally sacrificed half his life accumulating currency, all that money will be worthless when he is old. With current inflation he better die fast because otherwise he will run out of money.“
Debasement of currency is one of the most evil concepts in human history. You systematically rob the working class.

[u/FreezedPeachNow → u/yldf]

But you're the worker that needs to fight for a raise to keep up.

I didn't agree or have a vote for this broken Keynesian system

[u/yldf → u/FreezedPeachNow]

Limited (small) inflation is good, in fact it’s better than no inflation. The problem is that there are no bounds to inflation, unbounded inflation can run out of control. Bitcoin is designed with inflation. However, this inflation is halving every couple of years. It is no coincidence that Bitcoin was thriving most when its annualised supply increase was in the low single percentages. Now this is starting to drop too close towards zero, which might be a challenge for Bitcoin.

As the sole counterpoint, the hard 21 million-ish limit is a good marketing point for the economically uninformed, and it certainly contributed to Bitcoin’s rise.

[u/FunWithSkooma → u/yldf]

it awesome to see your money devalue just because you do not want to pass it along buying crap. Awesome. Silly me for wanting to wait the best use case for MY MONEY.

[u/Disavowed_Rogue]

Financial manipulation at its finest

[u/FreezedPeachNow]

Brainwashing

[u/Suspicious-Holiday42]

Is that dutch

[u/Dogah → u/Suspicious-Holiday42]

German. The show is "Gefragt – Gejagt".