There is, however, another side to inflation which we must not lose sight off. Inflation is only a problem when incomes fail to track inflation (as in the scenario above), it has good things about it as well. Economic growth, with a growing population is impossible without inflation (Adam Smith proved this 200 years ago). But there is yet another aspect. In the 19th century one of the biggest political issues of the day was the "bimetalism" debate. Bimetalism was a movement to introduce silver as an alternate currency alongside the gold standard. The bimetalists were mostly working poor and their political representation like unions. The wealthy and the banks opposed it. The argument FOR bimetalism was that it would create inflation. One definition of poor is "people who have to borrow money" while rich are "people who can afford to lend money". Inflation makes debts cheaper to pay. It counteracts interest. The poor wanted inflation - to make debts cheaper, and thus be less poor.