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In case you were unaware, inflation is incredibly low and has been so for quite some time. Thinking that handing out free money will automatically and immediat
by morgante 10y ago
In case you were unaware, inflation is incredibly low and has been so for quite some time.
Thinking that handing out free money will automatically and immediately cause price inflation is naive. If that were true, why would we still have such low inflation after nearly a decade of expansionary monetary policy?
- mindslight 10y agoThe price index is rising slowly, but the inflation that's causing it is unprecedented (eg the absurdly low interest rates and talk of going negative). In a technological economy, we'd expect the price of goods and services to be continually decreasing, as price is the fundamental metric an economy optimizes for. Instead, the fed has insisted on rising prices so that everybody is kept working more, in spite of ever-growing technological progress. Predictably, the components of the CPI that are directly dependent on production decrease, while the sectors that have been financialized (housing, education, healthcare) shoot up as that is where conjured money is injected at the consumer level.