Thousands of Los Angeles city employees recently went on strike over allegations of unfair labor practices and inadequate pay. With inflation surging, workers are feeling the squeeze as the buying power of their wages diminishes. Trust between citizens and institutions erodes when economic conditions make it difficult for people to get by. In such an environment, could an inflation-resistant currency like Bitcoin help restore good faith?
The Vicious Impacts of High Inflation
Elevated inflation can kick off a vicious cycle according to some experts. As use of the dollar declines globally, higher inflation may follow, prompting central banks to raise interest rates. In turn, those higher rates weigh on asset prices and growth. It’s a toxic feedback loop.
Already, the dollar has lost significant ground against other currencies. And the Fed’s aggressive rate hikes are taking a toll on housing and stocks. When citizens feel such economic pain, anger towards governing bodies is a natural result.
An Alternative to Instill Trust
Unlike dollars, Bitcoin’s supply is capped. This scarcity makes it more resistant to inflation over the long-term. Citizens could opt to store some wealth in a currency that cannot be devalued at will by central bankers.
Knowing their hard-earned money will maintain purchasing power could restore some of the trust lost amidst soaring inflation. And limiting the ability to fund deficits via money printing could impose fiscal discipline on governments.
Adopting Bitcoin as a parallel currency could check inflation and instill good faith between citizens and institutions again. Through tech that empowers people over unchecked power, political tensions may ease.
Our Shared Humanity
While nations divide us, our dreams unite us. Most people simply want to provide for their families and live in peace. Though the path forward is uncertain, solutions rooted in trust and good faith hold the most promise for progress.
Thank you for reading “LA City Workers Strike for 24 Hours: As Inflation Skyrockets, Can Bitcoin Be the Solution?“.
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