The rich people will be less rich in that situation. They are in a similar situation now with the current inflation, but growth of money has to be tied to economic growth or otherwise the rich will feel screwed.
I'm not saying it's good, but you cannot screw the rich. The current situation is a compromise and a very sensible at that I might add, despite all the noise from tin-foil hatters.
There are also other, practical consideration which will make what you are proposing impossible to put in practice for a prolong period of time.
> "The rich people will be less rich in that situation."
> "growth of money has to be tied to economic growth or otherwise the rich will feel screwed."
> "I'm not saying it's good, but you cannot screw the rich."
Two points:
1. Aside from the financial services industry, the rich would be just as capable of getting rich regardless of how new money was put into the system. The pot of available money to grow their businesses would still exist.
2. What is stopping a group from "screwing the rich"? Furthermore, why are you framing addressing economic inequality as "screwing the rich"? Economic inequality will get addressed one way or another, the divide between the rich and the poor shouldn't be allowed to grow unchecked.
> "the noise from tin-foil hatters."
If you're referring to me, I was merely pointing out how the money system works and pointing out that alternatives are available. If you want to refute the accuracy of what I've stated, then please feel free to do so.
The rich do better than everyone else in times of inflation. Their assets are heavily liquid and easily moved. They have very little to fear from higher rates of inflation, it enables them to outperform everyone else that is more income dependent and less asset rich. The poor have the most to fear, by far. That's also why the rich have done so well since the year 2000, the Fed's policies have been heavy on dollar debasement since then, which has eroded the median while the rich have been able to benefit from the Fed's monetary support of asset prices. The Fed's asset inflation policies are a prime driver of the growth in wealth inequality in the US.
I would say it's not a rich vs poor issue. The people who lose money with inflation are the ones who are over exposed to their currency: pensioners close to retirement, forex traders or foreign governments who bet on that currency, black market players who have to hold large amounts of cash without investing it, banks with a lot of fixed 30 year low interest rate mortgages outstanding. Forex players, banks, and foreign governments can be rich, pensioners and black market players can be poor.
Banks actually sell most of the mortgages back to the federal government in the us. Maybe that's the reason us government isn't inflating the dollar too much. They themselves hold most of it through mortgages.
I'm not saying it's good, but you cannot screw the rich. The current situation is a compromise and a very sensible at that I might add, despite all the noise from tin-foil hatters.
There are also other, practical consideration which will make what you are proposing impossible to put in practice for a prolong period of time.