Value of each unit of money has been constantly and consistently decreasing

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Discussion Overview

The discussion revolves around the perceived constant decrease in the value of money over time, exploring its sustainability and implications for the economy. Participants touch on concepts related to inflation, deflation, and economic growth.

Discussion Character

  • Debate/contested
  • Conceptual clarification

Main Points Raised

  • One participant suggests that the value of money has been consistently decreasing throughout history, questioning the sustainability of this trend.
  • Another participant notes that money circulates more quickly and that more money is printed as needed, implying a relationship between money supply and value.
  • A different viewpoint posits that the decrease in money value is a byproduct of economic growth, where increased availability of goods and higher consumer spending lead to a lower value of money.
  • Concerns are raised about deflation, with one participant explaining that while decreasing prices might seem beneficial, it could lead to reduced consumer spending and economic stagnation.
  • Speculation arises about extreme future scenarios where the cost of basic goods, like bread, could skyrocket, reflecting fears about inflation.
  • Another participant humorously suggests that in the future, currency might shift to the Euro, while also contemplating the possibility of very low prices in a deflationary context.

Areas of Agreement / Disagreement

Participants express a range of views on the implications of decreasing money value, with no consensus reached on whether this trend is sustainable or what its long-term effects might be.

Contextual Notes

Participants' arguments rely on various assumptions about economic behavior, the relationship between money supply and value, and the potential consequences of inflation and deflation, which remain unresolved.

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Seems like value of each unit of money has been constantly and consistantly decreasing over history in the civilized world, how is this sustainable ?

EDIT: Damn this post does not belong here but I can't delete it doh!
 
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Money moves faster. And we print more when necessary.
 
Its simply a biproduct of economic growth. More goods are available and more people have more money to spend on those goods. So the value of the money will go down.

As long as its low, its a healthy thing. But DEflation can be very bad.

Imagine if prices DECREASED constantly. Sounds great, doesn't it? But wait, if prices are going down, why not wait a week or two or three or ten before buying that new car? With deflation the motivation for immediate spending decreases and the economy quickly grinds to a halt.
 
But where will it all end, I guess sometime in the future you could pay 1 million pounds just for a loaf of bread :/
 
Originally posted by username
But where will it all end, I guess sometime in the future you could pay 1 million pounds just for a loaf of bread :/


By then, we will probably be using the Euro anyway.

However, with all this talk of deflation, we could be paying 5pence for a loaf of bread.
 

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