If money loses value every year, every month, every day... then you're forced to constantly run.
You can't stop. You can't think.
You have to act. Work. Produce. Chase.
If you stop, you lose.
It's a perfect mechanism to keep your consciousness trapped in survival, fear, urgency.
As the price increase continues to spread, people tend to make different assumptions about its causes. Those who believe that the increases are structural and lasting decide to advance their spending, in anticipation of further price increases.
Obviously, those who believe that the increases are temporary make the opposite decisions. All this causes transfers of wealth to those who are more farsighted. Likewise, if prices continue to rise, debtors are advantaged, because they will repay the loans received with a currency that will have, in the meantime, devalued (while the goods purchased with the borrowed money will have appreciated).
The opposite fate befalls creditors. This is another case in which inflationary policies determine a transfer of wealth between individuals.
#economy #austrian
