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6 points

. The fed printing money created more liquidity, but that doesn’t directly create inflation which is the rise in prices of goods and service. That’s done by people who control pricing which are the business owners.

It absolutely affects inflation because there’s more money chasing the same number of goods/services.

If business owners don’t raise their prices at all, the real price of those goods would drop, because each dollar is worth less when you pump up the money supply.

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It absolutely affects inflation because there’s more money chasing the same number of goods/services.

Since the money is going predominatly to the wealthy then there isn’t more money chasing goods and services. The average consumer is not benefiting from QE as you yourself pointed out.

Business owners are raising prices in way that’s increasing their profits, they’re not doing it to keep up their rate of profit steady. https://thehill.com/business/3756457-corporate-profits-hit-record-high-in-third-quarter-amid-40-year-high-inflation/

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8 points

The wealthy don’t just put it under the mattress.

If they do some big ego projects, the people they hire take that money and increase their own consumption.

If they park it in investments, some company takes the capital injection and increases their spending.

All that money chases labor, and labor can be reapportioned to meet different needs. A billionaire can buy a slightly bigger yacht with their share of the Fed printing. That bigger yacht needs a little more labor, and someone ends up building more cabinets for the interior rather than building housing for the poor.

The billionaire doesn’t blame themselves for inflation, and someone at the bottom can’t figure out why suddenly a full time job doesn’t pay for housing. But that Fed decision moved labor from benefiting the poor, to benefiting the 1%.

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They don’t put it under their mattress, but the projects they invest into aren’t resulting into wealth being generated by the working class. When these people create a new business ventures, they still pay subsistence wages. So, you get more employment, but it’s low quality employment. Any actual wealth produced ends up going to the capital owning class.

So again, people who own capital are the ones who decide the prices and the wages. These are the people in control of what we call inflation.

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