Assuming the title to be accurate, what is a good way for the working class (90%+ of all humans) to save and succeed in this current environment?

  • ℕ𝕖𝕞𝕠@midwest.social
    ·
    4 months ago

    Why would I assume the title is accurate? I've never heard this criticism of fiat currency before, since the whole point is that it doesn't rely on on scarcity but on the stability of the issuing body. Can you explain, or is that outside the scope of this thread?

    • aviation_hydrated@infosec.pub
      hexagon
      ·
      4 months ago

      The issue is those closer to the money printer get the biggest rewards (according to the US Fed's description of their stakeholders) so as they increase their supply of currency they can accumulate more goods, outpacing the rest of the classes which have to suffer through inflation, which debases their money, keeps wages low and goods prices increase

      In an evenly distributed and fully observable currency supply which can rise and lower as needed, there is no inherent issue with fiat currencies as long as the issuing party is reputable and wages increase at the same pace (up or down) with all prices

      • ℕ𝕖𝕞𝕠@midwest.social
        ·
        4 months ago

        Yes, that sounds better. I didn't mean to imply there are no problems with fiat currency, only that scarcity wasn't one I'd heard argued.

  • Dessalines@lemmy.ml
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    4 months ago

    Fiat can work fine on a finite planet, most money doesn't even take up physical space anymore, just bits in an account ledger database. Ideally in the future governments will make sure their currency is backed or based on labor time, and nothing is technologically preventing that, nor is crypto-currency required for it.

    • aviation_hydrated@infosec.pub
      hexagon
      ·
      4 months ago

      The issue here is according to the Fed, the stakeholders get a 6% return, which is supposed to outpace inflation. So if the ones closest to the money printer get more every year, while the rest lose money due to inflation eating it, it doesn't matter if it could theoretically work, it leads to an accumulation to the class system at the top while the lower classes must continually work forever since their savings are worth less every year

  • Barx [none/use name]
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    4 months ago

    The working class cannot win without overthrowing the owner class. The owner class is the ruling class and functions, under capitalism, to extract from the working class and make capital into more capital. It cannot escape this role so long as capitalism exists and the owner class is in charge. The fundamental mechanisms by which that system works is coercive on both classes. "Nice" members of the owner class are hammered into complacency through failure and exit (becoming working class again) or abandonment of their principals. Or they luck out and are minor and largely irrelevant, facing no competitors or predators. Real solutions require that we organize and spread class consciousness.

    On an individual level, you can try to protect yourself from some of the most extreme economic violences, but they are inherently limited. Fiat currency only has value because the issuer is "good for it" and you can use it as capital and for personal purchases of commodities. Crypto is not money at all, it is an unlicensed security. If your interest is in money-like things, I would recommend inflation hedge-alikes gold and real estate. But these require you to already have significant savings. And they are something to hawk in order to leave the country and cannot replace a functional economic base or allow you to weather a true crisis staying in the country. Having a backup shelf-stable food supply and means to boil water is also a good idea.

    Our fates are all tied together under this economic system. We will quickly starve and die of preventable disease in a real, sustained crisis, as it will disrupt agriculture and utilities. Only a stable productive base, a real economy that produces what humans need, can provide when borders close or trade halts. And, realistically, everything you can do as an inflation hedge is much better when done at the community level. Mutual aid is more effective than a personal bean stash (do both!). A network of like-minded people can secure travel and estimate when to leave vs. fight. You can buy real estate with less capital if you go in together. Etc etc.

  • Anna@lemmy.ml
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    4 months ago

    Stockpile canned beans they will become the most valuable currency once the WW3 starts.

    #NotAFinancialAdvice

  • finley@lemm.ee
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    4 months ago

    Socialism. The problem here isn’t with currency, it’s with capitalism.

  • ToxicDivinity [comrade/them]
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    4 months ago

    The only way for a working class person to have any financial security is to join or build a strong union with other working class people. The rich/powerful/elites will always be able to crush us if we don't work together

  • GarbageShoot [he/him]
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    4 months ago

    What do you mean fiat doesn't work on a finite planet? Current economic models certainly don't work on a finite planet, but fiat was here before them and will be here after they are long gone.

    what is a good way for the working class (90%+ of all humans) to save and succeed in this current environment?

    There isn't one. A big chunk of that class can do just fine and you probably already have good normative answers in that respect, but the current economic model is one that demands poverty. Even with all of the ridiculous developments in production we have, the available infrastructure even with the qualms we might have with it, and all the other things going for us that you might want to list, the closest that the current economic model has achieved to escaping its age-old need for having a sizeable portion of the able-bodied population unemployed is by slightly expanding that same portion and then having them sell themselves by the hour and minute in the Gig Economy. If you want that whole 90% of the population to all be able to do well, you need to change the system they are operating within.