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In 16th century Spain, money was used to buy mostly physical goods. The requirement that physical goods be produced limited supply. Redeploying labor and production capacity to provide more of one good, reduced ability to produce more of another good, so demand pushed it's price up, so prices went up for everyone.

Classical economics 101, managing scarce resources.

There is relatively little inflation in physical goods prices in the US, because most of the loot is handed to the "job creator class", which piles it into financial products, which are both less work to profit from and more profitable.

Your hate of the "job creator class" is blinding you to the realities of the digital economy and the wealth producing power of capitalism.

Let's start with capitalism, it has lifted humanity from the hand to mouth economy of the hunter gatherer and has allowed humans to accumulate wealth beyond the minimal needs of survival. During the second half of the 20th. Century capitalism was put on steroids by the digital economy that produces wealth with a minimal number of atoms. One of George Gilder's favorite quips is to the effect of "waste abundance with glee." Gazillions of transistors each one costing practically nothing, an unlimited supply of data captured by the WWW. The digital companies surpassed the atom companies in wealth creation. The top five companies by market cap are all digital and not a single one of them is a financial entity.

Steve, come up for air and smell the data!

There is no scarcity in the digital economy to power inflation, the lack of scarcity is what makes technology deflationary and classical economics obsolete.

The Captain
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