Inflation Meme

inflation-meme

Inflation only benefits people with debt, and the government. Since the value of already existent dollars will diminish with every dollar printed, it means debt can be paid back with inflated dollars. If you put the $6 soda and popcorn on your credit card in 2008, ignoring interest, you could pay off the $6 debt in 2013 where the value of the $6 is now $5.53 in 2008 dollars. Currently our government owes about $17 trillion in debt. If the government was to pay off $100 dollars of debt accrued in 2000, they could do so with $100 that is worth only $73.72 dollars from 2000. Even if it took $135 to pay off the interest and debt on the $100 from 2000, the actual cost would still only be $99.52 compared to what the money could buy when it was spent in 2000. The money that people with debt save by paying it back with inflated dollars equals the money lost on dollars saved, meaning that people with debt owe less, and people with savings have less, due to inflation.

 

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