Inflation Is For Supremacists
Let's imagine there is a small sovereign community of 4 industries: T: Tools U: Utilities H: Housing F: Food and say each industry needs to sell, for units of money, 100 per month, to the other 3 industries, each industry earning a money amount of 300; and each industry needs to buy from 3 other industries, to procure all the necessary items for all the 4 industries to thrive better together, each industry spending 300. T sells 300 to UHF; T buys 300 from UHF; U sells 300 to THF; U buys 300 from THF; H sells 300 to TUF; H buys 300 from TUF; F sells 300 to TUH; F buys 300 from TUH; 300 minus 300 is 0. The above explanation intends to show how money exchanges between industries. There is no inflation in this example because all 4 industries split their money equally. Yet in reality, people don't share money equally. In order for few people to have a lot of extra money, many people must operate with not quite enough money. Let's imagine this small sovereign community from th...