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Inflation is generally believed to be caused by an imbalance between the quantity of money and the goods & services in the market. BI per se doesn't change the
by arebop 11y ago
Inflation is generally believed to be caused by an imbalance between the quantity of money and the goods & services in the market. BI per se doesn't change the money supply; it can be done by redistribution of existing money rather than debasing the currency.
- 1024core 11y agoI would disagree. If, for example, I take $1B each from every billionaire in the SV (for a total of, say, $20B) and gave each resident of SV (say, 2M residents) an extra $10,000, won't the prices go up? People will go on a spending spree, buying up TVs and cars and games, driving up their prices? There is a reason why gas costs more in SF than in, say, San Mateo.
- arebop 11y agoThen perhaps TV prices will go up, but jet prices will go down. That sort of mixed change in prices is not consistent with the usual definitions of "inflation." Do you still like your argument when you think about quartiles rather than comparing the top 20 data points against the bottom 2 million? I think it's hard for most people to trust their intuitions about the spending habits of billionaires.