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Inflation of the dollar, which is used as the global reserve currency, is how the US extracts tribute from it's global empire.

BobbyJo 6y ago
I think a better way to look at it is: people paying to park wealth in the worlds most stable and transferable currency. Even North Korea likes holding US dollars. We have the most stable, predictable economic environment in the world, and the oldest functioning constitution. Why would we not extract some of the value in that? Another point: Inflation plays a domestic role as well, as it increases the velocity of money.
- dnautics 6y ago
  > Inflation plays a domestic role as well, It's a fantastic way to steal from the poorest and most vulnerable citizens and blame it on "capitalism".
  - anonporridge 6y ago
    It's definitely fantastic for anyone with employees. If the currency was deflating, you better believe your boss would be doing a downward cost of living adjustment ever single paycheck. As it stands, they can just keep your pay fixed and you are constantly becoming a lesser business cost until they begrudgingly give you a 1-2% annual cost of living adjustment. Basically, it's easier to manipulate individuals into working for less if the number they're getting remains the same or even goes up, but slower than real inflation.
    - dnautics 6y ago
      > Basically, it's easier to manipulate individuals into working for less if the number they're getting remains the same or even goes up, but slower than real inflation. But that's that's not what happens. Wages don't keep up with inflation. https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/
      - BobbyJo 6y ago
        I could be wrong, but it looks like that is comparing an aggregate/mean ('total productivity's) with a median ('typical wage'), which would paint a very innaccurate picture of what's happening. Like, imagine everything stays the same, but a new class of extremely productive high paying jobs is invented, and grows to 10% of the workforce. This would have only a marginal effect on median wage but a huge effect on aggregate productivity. Nothing would change in any other industry (bread factories still have the same output and still pay the same) but it would make this stat look like like 'the rich are stealing our wage growth'.
- Bluestein 6y ago
  > Even North Korea likes holding US dollars. (To the point they actually "mint" them, via the best available forgeries ...)

BobbyJo 6y ago

I think a better way to look at it is: people paying to park wealth in the worlds most stable and transferable currency. Even North Korea likes holding US dollars. We have the most stable, predictable economic environment in the world, and the oldest functioning constitution. Why would we not extract some of the value in that? Another point: Inflation plays a domestic role as well, as it increases the velocity of money.

dnautics 6y ago
> Inflation plays a domestic role as well, It's a fantastic way to steal from the poorest and most vulnerable citizens and blame it on "capitalism".
- anonporridge 6y ago
  It's definitely fantastic for anyone with employees. If the currency was deflating, you better believe your boss would be doing a downward cost of living adjustment ever single paycheck. As it stands, they can just keep your pay fixed and you are constantly becoming a lesser business cost until they begrudgingly give you a 1-2% annual cost of living adjustment. Basically, it's easier to manipulate individuals into working for less if the number they're getting remains the same or even goes up, but slower than real inflation.
  - dnautics 6y ago
    > Basically, it's easier to manipulate individuals into working for less if the number they're getting remains the same or even goes up, but slower than real inflation. But that's that's not what happens. Wages don't keep up with inflation. https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/
    - BobbyJo 6y ago
      I could be wrong, but it looks like that is comparing an aggregate/mean ('total productivity's) with a median ('typical wage'), which would paint a very innaccurate picture of what's happening. Like, imagine everything stays the same, but a new class of extremely productive high paying jobs is invented, and grows to 10% of the workforce. This would have only a marginal effect on median wage but a huge effect on aggregate productivity. Nothing would change in any other industry (bread factories still have the same output and still pay the same) but it would make this stat look like like 'the rich are stealing our wage growth'.
Bluestein 6y ago
> Even North Korea likes holding US dollars. (To the point they actually "mint" them, via the best available forgeries ...)