The morality of austerity and inflation

Somebody on LinkedIn has asked if austerity is a morality issue.

Of  course austerity is a morality issue but so is inflation.

Austerity is a moral issue because it inflicts unemployment and hardship on some people.  Inflation is a moral issue because it is a form of theft in that it reduces  the purchasing power of savings and pensions.  The opposite to austerity is government stimulus spending but it is not clear we can have stimulus without inflation.

So the challenge is to design a way of exchanging goods and services and a money system to facilitate that exchange such that there is no inflation or deflation.  To do this we will have to first challenge all sorts of motherhood issues with regard to money, work and economics.

 

If you liked this post your are invited to comment, press the like button and/or click  one of the share buttons. If you disagree you are invited to say why in a comment.  While I like the idea of sharing this platform, my personality is such that I don’t reply to many comments.

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