FlyerTalk Forums - View Single Post - A close in Low BE ticket -- Icicles forming in Hades?
Old Mar 24, 2010 | 7:11 pm
  #27  
ijgordon
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Originally Posted by FlyingHigh20
And maybe I'm forgetting something here - but bonuses are not supposed to devalue a system of currency.
<snip>
This shouldnt happen to DL SkyMiles either - esp a "currency" that Delta controls exclusively.
I think it's less about you forgetting something as not paying attention in Economics class in the first place. By virtue of DL exclusively controlling the currency, the bonus miles absolutely do devalue the currency. The analogy is the US Treasury printing money, which they'll have to do to pay off the nation's debt over time, which will lead to inflation --> the definition of which is that your existing unit of currency is worth less.

If their current redemption program couldnt handle an influx of bonus miles proportinately while still retaining their value, they should've never given them out in the first place.
No, they probably shouldn't have. @:-)

Whenever I get a bonus at work, it doesnt mean my salary is worth less or the value of a dollar/work hour is weakened.
But if enough people start getting bonuses, it drives up the demand for goods and services, then prices go up, then your dollars are not worth as much as they once were.
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