rradina
join:2000-08-08
Chesterfield, MO
| Re: Thank you Bush and the merry band of rethugluicans I thought controlled inflation (3%) is a foundation of a healthy, capitalist economy. Think about your home. What if you bought your home for $100,000 and at the end of 20 years, it was still only worth $100,000? Given typical mortgage interest rate, you'll pay ~$200,000 to own that $100,000 home and at the end of 20 years it will need a lot of upgrades and repairs. If you throw in property tax, it cost a lot to own that $100,000 home. However, if inflation increases the value of the home and your salary rises with a cost-of-living increase, the proportionate value of your debt continues to decrease and you finally get ahead and the home actually ends up being a very worthwhile investment.
I thought deflation was evil because then everyone goes broke because today's debt continues to be more valuable and you can never get rid of it.
Imagine if the trillions of dollars we owe (because of our government's overspending) continued to represent MORE rather than less. We'll probably never get out from under our debt as it is, deflation would assure that it would never be possible to get out from under it. |
