2 ms·
inflation is used to keep the "time value of money" working so that capital is incentivized to be reinvested, lest it lose all its value over time. this impetus
by clairity 7y ago
inflation is used to keep the "time value of money" working so that capital is incentivized to be reinvested, lest it lose all its value over time. this impetus leads capital to relentlessly seek returns, which over time compresses returns to labor in favor of capital.
so suppressing labor is certainly a consequence of our positive inflation policy. the intention can be debated, but note that various govermental units tolerated prejudiced efforts like mccarthyism and redlining too.
- dnautics 7y agoI think the intent is to 'keep employment numbers up at any cost'. But that there is a (predictable, and evidenced) unintended consequence to the prescribed method of attaining that objective is an indictment of the class-blindness of the liberal economic polity, and, secondarily, the brokenness of modern 'science' and 'scientistic' pursuits. (not saying the right is much better on that front)
- clairity 7y agoi'm sympathetic to the original indictment that capital holders (like many hbs grads) realized, and then moved to solidify, this tilting of the board in their favor by supporting inflationary policy. i'm not sure that the liberal economic polity is a distinct class from those same capital holders (but i generally disfavor left-right political framing anyways).
- dnautics 7y agoYeah sorry to make it seem too much like a left versus right issue, I hate both sides, I just specifically pointed out "left" because the left purports to care about the "little people" (see Krugman) while very much actively pursing policies that are great for capital holders and rhetorically espousing policies tantamount to throwing bones to everyone else.