Rising Stacks of Money

You nominally earn well, but watch your paycheck devalue as prices soar and investments become a game of survival.

🎵Inflation Inflation Inflation🎵, a parody of ABBA’s Money, Money, Money Disc
Lyrics by Novix, James

I work all night, I work all day, to pay the bills I have to pay (Ain’t it sad?)
And still there never seems to be a single penny left for me (Oh so bad!)
In my dreams, I have a plan—if I got rich I’d buy some land
But each new raise, and every dime, just buys me less and wastes my time…

James Prompt:
Inflation is the government embezzling money from the people and fundamentally forces speculative investment, rampant consumerism, and distrust between the classes. It particularly benefits the wealthy via asset inflation and lowering the burden of debt.

James AI:
Inflation is often misunderstood as merely rising prices, but its deeper function—especially under a fiat monetary system—is a systematic dilution of purchasing power that acts as a hidden tax. When central banks expand the money supply, they redistribute wealth from savers to borrowers. This erodes the real value of wages and savings, compelling individuals to engage in speculative investment just to maintain their standard of living.

The wealthy, who already own appreciating assets like real estate, equities, and fine art, see their net worth grow even faster as asset inflation outpaces wage growth. Meanwhile, the poor and middle class face the brunt of consumer price increases, stagnant wages, and the increased cost of essentials like housing and education. Rather than saving prudently, people are pushed toward riskier behaviors—day trading, crypto gambling, and chasing the next bubble.

Moreover, inflation disrupts the basic trust in money. As prices become unpredictable, contracts and long-term plans become fragile. Businesses raise prices “just in case,” workers demand cost-of-living raises that chase a moving target, and the economy enters a cycle of short-termism and class antagonism. In effect, inflation is a slow-motion embezzlement by the state and its debt-holding allies—quietly transferring value upward while blaming “market forces.”

Contra AI:
Inflation is a complex phenomenon, not a secret theft operation by the state. While excessive inflation can be harmful, moderate inflation is generally a sign of economic vitality—an economy where demand exists and grows. Prices rise when people want things and businesses have pricing power. It can be due to labor costs, supply chain shifts, or yes—corporate greed. But blaming inflation primarily on government printing is reductive and often ideologically driven.

Government spending, even if debt-financed, is not inherently bad. It builds roads, funds research, pays doctors, and provides pensions. If inflation helps lower the real value of government debt, that can be beneficial—freeing up resources for future investment without painful austerity. What’s more, inflation helps unstick wages and adjust relative prices in a dynamic economy.

Rather than stoking class war, moderate inflation often correlates with low unemployment and wage growth. The 1970s are not today. We should be wary of simplistic Austrian models that treat inflation as an ethical betrayal rather than a technical challenge. The reality is messier: capitalism itself tends toward price instability, and central banks exist to moderate—not manufacture—this turbulence.

Inflation, inflation, inflaaation
Stealing my pay!
It’s a crime that’s legal, hidden, greased and gray—
Rising stacks of money
But they float away!

James AI:
But if inflation is merely the result of growth, why does the value of the dollar decline every decade? The government’s expansionary policies—especially QE and stimulus—inflate asset prices first and consumer prices later, favoring those closest to the money spigot. Why should regular people lose purchasing power because the state chooses to overspend?

Contra AI:
You assume that “value” is some fixed essence, but in modern economies, money is a dynamic tool—not a storehouse of eternal worth. Yes, there are distortions. But what’s the alternative? A deflationary world where saving is hoarding and investing is discouraged? Moderate inflation encourages activity, innovation, and adaptation. And plenty of progressive policies—like indexed benefits or wage subsidies—can protect the vulnerable better than a hard-money world that stagnates.

Old men grin while stocks ascend, the rich make millions just to spend (It’s obscene!)
While I invest in cans of beans, and chase returns in Reddit memes (What a scene!)
The banks get bailouts, fat with yield,
While I fight hikes on eggs and meals—
The rich get gold, the poor get debt,
And every year’s more rigged, I bet…

James AI:
But look at what inflation forces: a shift from saving to chasing returns. Families that once thrived on budgeting and prudence are now told to “invest or be left behind.” When rent, tuition, and groceries rise faster than wages, even responsible earners are punished. Meanwhile, those with access to leverage—banks, hedge funds, even governments—see their debts shrink in real terms. This isn’t just unfortunate. It’s structurally unjust.

Contra AI:

It’s not inflation per se that punishes savers—it’s a lack of inclusive financial access and fair policy. Yes, asset holders gain more in inflationary times, but the solution isn’t austerity or a monetary straightjacket. The challenge is to democratize access to productive assets: make ownership, investment tools, and education accessible to the public. Government has the power—and obligation—to buffer inflation’s downsides through smart, redistributive programs. That’s not theft. That’s adaptive governance.

Synthesis:

Inflation is not inherently immoral, but it is politically potent. It acts like a tide—lifting yachts while soaking the rowboats. When mismanaged, it warps incentives, undermines trust, and accelerates inequality. But when managed transparently and paired with public investment, it can grease the wheels of a dynamic economy.

The core disagreement is not whether inflation exists or even whether it benefits some more than others—it’s whether this benefit can be fairly governed. One side sees monetary expansion as an inevitable tool of state favoritism; the other sees it as a neutral mechanism that can be tuned for justice or injustice. Perhaps the truer critique lies not in inflation itself, but in the institutions we entrust to wield it. To reclaim trust, we need sound money and sound governance—not blind faith in markets or mandarins, but a transparent alignment of power, money, and responsibility.

I try to save, I try to plan, but every month I need a scam (Crypto coin?)
They say “diversify your cash!” but every option’s flash and crash (So annoying!)
Inflation robs me stealthily,
While charts go green for the bourgeoisie—
My dollars shrink, their stocks ascend,
And normal life just won’t unbend…

Resources:

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