Also, a focus on debt ignores what the debt buys. If you add up all debt, there are assets on the other side.
Of course. That’s what a “balance sheet” is, after all. :-0
The assets are the educated people, natural and built resources, organizations and processes that underpin the money in circulation. It is these that make us rich. The money simply represents their value.
Although I get nervous when somebody tells me that the “balance” to debt are difficult to quantify, abstract items….let’s go with that for a moment.
- Over time, as automation increases, fewer educated people will be required to operate the economy. This is all well documented by any of the Medium articles that extol the benefits of Guaranteed Basic Income.
- It is difficult politically in the US to monetize our natural resources; and, natural resources, of course, cannot be replaced after monetization.
So, you’re arguing for a constantly declining dollar value?
A small amount of inflation is only a problem for people on fixed incomes. It is irrelevant to everyone else, as most people spend what they earn in current dollars, or those with the means invest it and get back more than inflation.
Hm. People on fixed incomes represent an increasing percentage of our population, and will continue to increase until 2045 or so. I find this statement disturbing.
What else needs to be done?
Personally, I would prefer if the government would not engage in activities which have the risk of creating unsustainable amounts of inflation. I do not recall the 70’s, and the fact that I financed my first home on a 15% ARM, fondly.
My sense is that people who did not experience the 70’s are a bit too sanguine about the effects of inflation.