Except reinvestment doesn’t matter if you aren’t capturing any labor value from that reinvestment. All of this financialization does not produce any labor value, which is why inflation goes up.
This is why, according to Adam Smith, in order to create wealth, real substantial wealth, the ‘wealth of nations (not individuals)’, you need to be able to direct that individual wealth into areas that produce labor value for the society.
Inflation and deflation are, according to Adam Smith and Karl Marx, essentially symptoms of the same problem. The problem of using fetishes (currency) and exchange value, to represent and derive labor value, when the two are separate things. But we can, in theory, integrate inflation and deflation into part of a formula that creates labor value.
The textbook problem with deflation is that rich people keep their cash instead of reinvesting it.
I’m sure this could be countered with wealth tax too.
But keeping the working class in a continuous economic struggle just to maintain their income is a desired outcome of inflation, I’m sure.
Except reinvestment doesn’t matter if you aren’t capturing any labor value from that reinvestment. All of this financialization does not produce any labor value, which is why inflation goes up.
This is why, according to Adam Smith, in order to create wealth, real substantial wealth, the ‘wealth of nations (not individuals)’, you need to be able to direct that individual wealth into areas that produce labor value for the society.
Inflation and deflation are, according to Adam Smith and Karl Marx, essentially symptoms of the same problem. The problem of using fetishes (currency) and exchange value, to represent and derive labor value, when the two are separate things. But we can, in theory, integrate inflation and deflation into part of a formula that creates labor value.