reidwalley on Nostr: How a watered-down pint of beer is like inflation in the economy. A pint of beer 🍺 ...
How a watered-down pint of beer is like inflation in the economy.
A pint of beer 🍺 starts out as 16 ounces of 100% beer, just like an economy starts out on a 100% gold standard.
Then your buddy, who only wants to help, gets the bright idea of helping you make your beer go further - by watering it down. So he adds 16 ounces of water to your existing 16 ounces of beer. And voilà!
You have 32 ounces of watered-down beer. But now it takes twice as much beer to get the same buzz of 16 ounces of 100% beer.
In an economy, your buddy just wants to be helpful and gets the bright idea to double the supply of money in the economy. And voilà!
You have twice as much money but watered-down purchasing power.
Yeah, there’s twice as much of it (32 ounces of beer and twice as much money). But damn, dude, yuck!
Watered-down beer tastes like ass. And watered-down purchasing power takes $2.00 to buy what used to cost $1.00.
A pint of beer 🍺 starts out as 16 ounces of 100% beer, just like an economy starts out on a 100% gold standard.
Then your buddy, who only wants to help, gets the bright idea of helping you make your beer go further - by watering it down. So he adds 16 ounces of water to your existing 16 ounces of beer. And voilà!
You have 32 ounces of watered-down beer. But now it takes twice as much beer to get the same buzz of 16 ounces of 100% beer.
In an economy, your buddy just wants to be helpful and gets the bright idea to double the supply of money in the economy. And voilà!
You have twice as much money but watered-down purchasing power.
Yeah, there’s twice as much of it (32 ounces of beer and twice as much money). But damn, dude, yuck!
Watered-down beer tastes like ass. And watered-down purchasing power takes $2.00 to buy what used to cost $1.00.