Comment Re:Economic worship (Score 1) 228
Destroying middle class has predictable consequence of tanking birth rate. News at 11.
"We must have constant inflation or people might, you know, save!"
Inflation isn't a deterrent to savings, it just means you have to put your savings somewhere that it also does work, i.e. invested in something. Having a non-zero inflation rate encourages investment, which encourages economic growth. This is good. But it's not the main reason we need constant inflation.
The reason we need constant inflation is because deflation is extremely harmful; it causes debts to grow which can make people and businesses insolvent. The Fed has a 2% inflation target because low inflation rates are manageable and because 2% is high enough that a decrease still won't go negative.