Thats our monetary policy. People must consume more every year to create more inflation, as technology actively reduces the price of goods.
If goods get cheaper we have deflation, they create more money supply via lower interest rates, and the price of inelastic shelter gets bid up, and asset holders receive a value windfall until prices rise. Which is why we are at a higher price to income ratio than 2007.
People born closer to the gold standard are richer, they got in when currency wasnt tethered to consumption.
Thats our monetary policy. People must consume more every year to create more inflation, as technology actively reduces the price of goods.
If goods get cheaper we have deflation, they create more money supply via lower interest rates, and the price of inelastic shelter gets bid up, and asset holders receive a value windfall until prices rise. Which is why we are at a higher price to income ratio than 2007.
People born closer to the gold standard are richer, they got in when currency wasnt tethered to consumption.