4 ms·

You are purposefully ignoring the normal explanation, which is this: because wages are sticky, firms that need to cut costs in a recession are more likely to la

You are purposefully ignoring the normal explanation, which is this: because wages are sticky, firms that need to cut costs in a recession are more likely to lay off people than they are to give pay cuts. Inflation helps to weaken that rigidity so that job losses are not as large. Maybe you know that. You claim that central banks depreciate the currency because they "think wages among the working class are too high." But rhetorically, you are doing more than just referring to the explanation I gave above. You are implying that central banks "think" working class wages are too high, and want to lower them to hurt working class people. Which is the opposite of the standard explanation - the purpose of inflation in that instance is to implicitly reduce the downward rigidity of wages so that employment does not contract as much in a downturn. Presumably you, champion of the working class, would rather more people be unemployed?

dang 6y ago
Would you please stop doing ideological flamewar on HN? This one was just over the top. You've posted a ton of these and it's not what this site is for. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
jmeister 6y ago
I admire your patience here.
chordalkeyboard 6y ago
> because wages are sticky, firms that need to cut costs in a recession are more likely to lay off people than they are to give pay cuts. Inflation helps to weaken that rigidity so that job losses are not as large. How fortunate for the capitalist that he can retain his entire workforce by paying them less and they are not even likely to notice. > You claim that central banks depreciate the currency because they "think wages among the working class are too high." But rhetorically, you are doing more than just referring to the explanation I gave above. You are implying that central banks "think" working class wages are too high, and want to lower them to hurt working class people. Banks wanting to hurt working class people is an unnecessary hypothesis. they merely want to help their friends who own businesses and would like to pay less in real terms for their workforce. > the purpose of inflation in that instance is to implicitly reduce the downward rigidity of wages so that employment does not contract as much in a downturn. give workers a stealth way cut so the business can afford to keep all of them, yeah, I get it. > Presumably you, champion of the working class, would rather more people be unemployed? I want them to be unemployed the same way you want them to be tricked into making less real money.
- dang 6y ago
  Would you please stop doing ideological flamewar on HN? This one was just over the top. You've posted a ton of these and it's not what this site is for. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html

dang 6y ago

Would you please stop doing ideological flamewar on HN? This one was just over the top. You've posted a ton of these and it's not what this site is for. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html

jmeister 6y ago

I admire your patience here.

chordalkeyboard 6y ago

> because wages are sticky, firms that need to cut costs in a recession are more likely to lay off people than they are to give pay cuts. Inflation helps to weaken that rigidity so that job losses are not as large. How fortunate for the capitalist that he can retain his entire workforce by paying them less and they are not even likely to notice. > You claim that central banks depreciate the currency because they "think wages among the working class are too high." But rhetorically, you are doing more than just referring to the explanation I gave above. You are implying that central banks "think" working class wages are too high, and want to lower them to hurt working class people. Banks wanting to hurt working class people is an unnecessary hypothesis. they merely want to help their friends who own businesses and would like to pay less in real terms for their workforce. > the purpose of inflation in that instance is to implicitly reduce the downward rigidity of wages so that employment does not contract as much in a downturn. give workers a stealth way cut so the business can afford to keep all of them, yeah, I get it. > Presumably you, champion of the working class, would rather more people be unemployed? I want them to be unemployed the same way you want them to be tricked into making less real money.

dang 6y ago
Would you please stop doing ideological flamewar on HN? This one was just over the top. You've posted a ton of these and it's not what this site is for. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html