4 ms·
It sounds a bit like the're saying benefits are the lever we control to balance between one disaster and another. On one side there is inflation which ruins th
by test6554 5y ago
It sounds a bit like the're saying benefits are the lever we control to balance between one disaster and another.
On one side there is inflation which ruins the economic recovery (too generous benefits) and on the other side you have mass suffering (too stingy benefits). As the primary driver of the shortage (the fear of COVID) goes down, we also need to scale back benefits while maintaining that delicate balance between too generous and too stingy. And we can't stop decreasing benefits until people begin to accept those less desirable jobs again. Failure to do this would push us over into inflation.
- oblio 5y agoAnd here I was thinking that undesirable jobs have to pay more to attract employees. Instead, because the power relationship between companies and employees is imbalanced towards companies, who can afford to not hire a few employees while individual employees can't afford to starve, these employees have to accept suffering for a pittance because hey, there's a slight risk of inflation (while companies have been bailed out to the tune of a few trillion).
- kwhitefoot 5y ago> the power relationship between companies and employees is imbalanced towards companies, This is why low wage workers should unionise.
- imtringued 5y agoModerate inflation doesn't ruin economic recovery. Italy and Greece both had low or shrinking inflation since 2016 and their economies are down the gutter. The rest of the EU that has reasonable inflation is doing very well with 2%+ growth well above inflation.
- andrewjl 5y ago> Failure to do this would push us over into inflation. Can you explain why you think this would happen?