The devalued dollar

My main point is inflation benefits those in debt. Right now we have a deflation problem which is more damaging then inflation. With declining prices companies have a harder time making a profit thereby laying off more workers. Japan and the Great Depression are good examples of this. I think the Fed is doing the right thing printing money in the near term and then they can raise the interest rates and control money supply as we come out of the recession to dampen inflation. It's much more difficult to fix deflation.

 

Personal income has outpaced inflation by 80% over the past 30 years.