Just a bit of open speculation today.
What would happen if we somehow managed to prevent inflation altogether, through a gradual phaseout of use of non-renewable resources, and a rethinking of how our economy is generated in the first place (i.e. zero interest loans - which I guess would be defined as grants).
Loans don't make a lot of sense to me. If you have X money available in the entire economy, how do you expect to get X+interest back unless you continually make more money and devalue your currency in the process? Zero-interest loans should exist and be used. This would help stabilize the world economy, by actually allowing people (and nations) to get a leg up instead of being buried under an ever-increasing mountain of debt. I realize that the credit card companies would go bankrupt by handing out zero-interest loans, but they seem to be one of the roots of the whole mess, to me. It's time for them to go.
(Tangent)
I myself have a credit card, and I hate it. I only use it when there is no other option of payment available. I would much prefer to use an instant money transfer service (debit) than a credit card, because I see where the money goes instantly, without having it sit on my mind for up to a month before paying it off. The illusion of having more money than you actually have is what drives people into the situations you see on shows like Til Debt Do Us Part. It's sad, really. We need to get rid of the opportunity for people to spend beyond their means. People will learn how to manage money wisely, and we will all be better off for it.
What would happen if we somehow managed to prevent inflation altogether, through a gradual phaseout of use of non-renewable resources, and a rethinking of how our economy is generated in the first place (i.e. zero interest loans - which I guess would be defined as grants).
Loans don't make a lot of sense to me. If you have X money available in the entire economy, how do you expect to get X+interest back unless you continually make more money and devalue your currency in the process? Zero-interest loans should exist and be used. This would help stabilize the world economy, by actually allowing people (and nations) to get a leg up instead of being buried under an ever-increasing mountain of debt. I realize that the credit card companies would go bankrupt by handing out zero-interest loans, but they seem to be one of the roots of the whole mess, to me. It's time for them to go.
(Tangent)
I myself have a credit card, and I hate it. I only use it when there is no other option of payment available. I would much prefer to use an instant money transfer service (debit) than a credit card, because I see where the money goes instantly, without having it sit on my mind for up to a month before paying it off. The illusion of having more money than you actually have is what drives people into the situations you see on shows like Til Debt Do Us Part. It's sad, really. We need to get rid of the opportunity for people to spend beyond their means. People will learn how to manage money wisely, and we will all be better off for it.
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