Every now and then you read a piece of journalism that is so ignorant you just can’t believe it. The instant article is one of those.
It makes an argument as follows:
- Price inflation reduces the value of a dollar.
- Debt is measured in dollars.
- Therefore, price inflation reduces debt.
There are so many holes in this logic it is hard to know where to begin. For example:
- When dollars lose value, people can’t buy as many goods.
- Interest on debt offsets the loss of dollar value.
- Price inflation may reduce past or existing debt in a way, but it increases current and future debt in the same way.
Bottom line, there is no good argument to make for the benefits of price inflation. The Intercept should know better, but since it is promoting a hoax we should question its motives. Perhaps it wants to prop up Stumble Joe.