Billionaires are necessary because they take money out of circulation, providing some deflationary pressure to the monetary system. If we were to distribute all their wealth, we’d have such high inflation that the entire economy would collapse.

  • A Reddit brained economics teacher
  • darkernations@lemmygrad.ml
    3·
    11 days ago

    This is completely unlike examples of hyperinflation where government has injected cash into an economy that does not have the capacity to ramp up production. E.g. printing more money to give to starving welfare recipients doesn’t increase the production of food. Hence inflation.

    The determinant being productive capacity rather than money supply here. It is those who ultimately control the means of production that help set the prices.