Daily Reckoning/Jeffrey Tucker/11-23-2022
“The late 19th century provided a good example of this. Under the gold standard, money grew more valuable over time, thus rewarding long-term thinking and instilling that outlook in the culture at large. Inflation has the opposite effect. It punishes saving. It forces a penalty on economic behavior that is future-oriented.”
USAGOLD note: Tucker revives some old-fashioned notions on savings, inflation, and the value of capital. If people save, it is good for the long-term viability of a culture, but we are not encouraged to save today, we are encouraged to spend. A recent survey conducted by Lending Club finds that 45% of those making $100,000 per year are living paycheck to paycheck. Overall, 60% of consumers are in the same tight spot – and that might be understating the reality.
