Reminder that inflation isn’t a phenomenon that’s beyond our understanding or ability to control. Inflation is the result of business owners choosing to raise prices in order to increase their rate of profit. That’s all it is.
If the main cause is increased monetary supply, it’s going to get far worse as the world de-dollarizes.
The USD enjoys an exorbitant privilege because its the world’s premier reserve and trading currency. Under the old rules, if the Fed printed more money, other countries would buy it to settle their international trade and as a safe harbor for their wealth.
The extraordinary sanctions against Russia have caused countries to shift to other currencies to settle trade since they still want/need to buy oil, gas, and food from Russia. That means that there’s going to be a lot more USD with no foreign escape valve.
Nothing really changed, business have been jacking up prices while suppressing wages this whole time. It’s not really a new phenomenon. 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.
. 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.
Not that I disagree with you at all, but we all want raises every year too. For you to get paid more you either need to take a higher level job or get a raise.
If course, inflation has exceed wage growth for a long time, but it’s not quite as simple as business owners just raising prices.
You’re thinking about this from an individualistic perspective, but the problem is systemic. As long as somebody has to do thejobb that means somebody is getting fucked. If majority of jobs aren’t paying enough then most people are being screwed.
And yes it is literally as simple as business owners choosing to raise prices while keeping wages down.
If we continued to do the same job, and the cost of living remained the same, most people wouldn’t think much of it. The problem still comes back to the business owners – they expect you to do more for the same pay, including firing someone and expecting you to also do that second job on top of your regular work for the same paycheck. Then when people demand a raise the business owner justifies raising their costs under the umbrella of “people just don’t want to work any more” when the reality is that what changed is the huge increase in how much that business owner is taking home themselves while delegating their own job to underlings.
Bold of this article to think the fundamentals of the economy will survive the coming climate apocalypse. Where the hell can I invest my money in growth when everything is either burning or flooding. Coffins?!?
Yeah, the future looks pretty bleak for young people. I’m in my 30’s and my retirement plan is fighting for survival or, preferably, dying.
Don’t worry, you will die of starvation long before your die of fire and flood.
My retirement plan is for a NATO-backed fascist paramilitary death squad to gun me down for harboring trans people
Retirement? My “retirement plan” is subsistence rat hunting in a bombed out Walmart, what good will money do me? Campfire tinder?
No worries. I’m poor now but I’m going to be a billionaire next week anyway.
Capitalism works!