I've heard it stated that in order for a company to survive it must expand but it has never really been explained to me why that is.

  • iByteABit [comrade/them]
    ·
    1 year ago

    There are many sources on this topic but off the top of my head:

    All the loans given out by private banks to companies and investors, often leads to those loans not being able to be repaid in time. Then, in order to be given more liquidity for them to keep on playing their game, the central bank owned by the state prints money in order to help them.

    Printing money leads to more money existing and therefore lower value of the currency.

    So in the end, the whole economy suffers as a sacrifice so that the rich can keep on doing their thing, hoping that it will eventually pay off and be worth it (or lead to a market crash).

    • FunkyStuff [he/him]
      ·
      1 year ago

      I don't think this is necessarily a good explanation. Inflation doesn't necessarily have anything to do with more money being printed. No money could be printed and inflation could still happen.

      All inflation means is the average price of goods is rising. That could be because workers are unionizing leading to higher wages and capitalists decide to raise prices to keep profits similar, it could be because unemployment is down and a similar effect occurs, it could be because of supply line problems, capital strikes, a whole myriad of things.