You seem to be blurring the line between “good for me” with “good for the economy”.
Why would a bank loan you money if you’re not paying enough in interest to offset the cost of inflation? Historically in such systems banks charge loan fees instead, and with those fees loans tend to be net-higher since capital seeks other investments, such as commodity trading (which tends to drive up the price for necessities, too!)
Bank loans for large purchases are, btw, very good things. If you are going to be not-spending $2000 a month for 20 years to buy yourself a home, it’s better for everyone if you can just live in said home while you do.
Please note that I’m NOT refuting your other points. Wage stagnation and income inequality are very bad things, and inflation does tend to exacerbate those things.
You seem to be blurring the line between “good for me” with “good for the economy”.
Why would a bank loan you money if you’re not paying enough in interest to offset the cost of inflation? Historically in such systems banks charge loan fees instead, and with those fees loans tend to be net-higher since capital seeks other investments, such as commodity trading (which tends to drive up the price for necessities, too!)
Bank loans for large purchases are, btw, very good things. If you are going to be not-spending $2000 a month for 20 years to buy yourself a home, it’s better for everyone if you can just live in said home while you do.
Please note that I’m NOT refuting your other points. Wage stagnation and income inequality are very bad things, and inflation does tend to exacerbate those things.
(We also haven’t talked about deflation,