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Joined 3 years ago
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Cake day: June 11th, 2023

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  • Sorry but the beliefs you’re expressing are deeply neoliberal (and false).

    First of all, NOTHING is natural about money.

    If people are saving in cash, then more and more money is removed from circulation, which leads to economic downturn (see any example of deflation in history). This is among the reasons why most countries aim for 2% inflation target.

    Also, investment is important actually (shocker). If you don’t want to invest in business or anything you can invest in government bonds. That’s right, the entity that creates the money in the first place also gives you a tool to save your money and mostly beat inflation.

    “We could have 0% inflation if we wanted” - No we can’t? If a raw material becomes scarce and the price goes up, the products have to increase in price too. These prices don’t go back down on their own, thats unfortunately not how markets work. That’s literally what this whole post is about.

    markets and money are entirely human creations. Nothing about them is natural. Stop worshipping them.



  • Inflation is always a distribution issue. If all the prices and wages went up at the same rate, the only thing being eroded is stockpiled wealth, and this would make the rich less rich. But that’s not how inflation works in a price shock like this.

    The article says prices rose 3.8% and wages 3.6%. If that doesn’t sound like much difference it’s because it isn’t. The real issue is that the prices of gas and food have risen far more than other goods (and will continue to do so, probably). People with lower incomes spend a much bigger fraction of their income on those consumer goods.

    Also, those 3.6% wage growth aren’t universal. The very lowest incomes haven’t all been lifted by that number.

    One way to combat this is to raise minimum wage and strengthen unions so they can negotiate better wages. Of course, that would increase overall inflation a little more, so the rich don’t want that to happen.

    Another way to combat this is to make heavy regulations such that US domestic oil production covers most needs, but the oil companies don’t want to miss out on record prices, and people have been taught that the government should never do things, and to let the market regulate instead.

    Welcome to the market.