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Because natural resources are finite. If you don't understand why runaway inflation is bad then you'll need to educate yourself.
by staplers 7y ago
Because natural resources are finite. If you don't understand why runaway inflation is bad then you'll need to educate yourself.
- glofish 7y agobut there is no runaway inflation - as a matter of fact the inflation is lower than typical
- bitxbit 7y agoInflation was low because of China. Production cost could easily triple in other parts of the world at the same quality and quantity even if we can move them instantaneously.
- samsonradu 7y agoGlobalization kept inflation at bay. Instead of upping prices due to increased production costs, enterprises in advanced economies moved production to China & co. This is not necessarily a bad thing of course, as China catches up and the ‘free’ markets work efficiently. Meanwhile the middle-class in the developped countries gets hurt, thus their economies see little inflation. Another argument for this would be that everything not outsource-able saw rather higher inflation than the CPI numbers. (Housing, education etc.) Inflation in China though hovers around 5% - https://tradingeconomics.com/china/inflation-cpi https://tradingeconomics.com/china/inflation-cpi
- QuesnayJr 7y agoRunaway inflation is bad, but in a recession we're not employing the resources we have -- that's why people are unemployed.
- staplers 7y agoAh yes the great recession of 2020, record high markets, record low unemployment..