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I sometimes wonder how anything about economics can be tested when the world’s manufacturing has been outsourced to China. All of these theories rest on the fac
by andy_ppp 5y ago
I sometimes wonder how anything about economics can be tested when the world’s manufacturing has been outsourced to China. All of these theories rest on the fact inflation has been largely under control in the west, not because of a lack of gold standard but because almost all physical items have had zero or negative inflation for 30 years or so. All the things not “Made in China” I would say have been massively inflated. If we were to start having to produce say plumbing supplies locally (say due to Climate change) will these theoretical money creation mechanisms still work?
- dcolkitt 5y agoThe US is a net exporter of food, and yet the price of food has significantly undershot headline inflation over 30 years.
- andy_ppp 5y agoInteresting! I don't know enough about the US agricultural system but I suspect technology plays a big part in that reduction in cost... I found this amazing raspberry picker for example! https://www.youtube.com/watch?v=3iXJFDoKEvI&ab_channel=OxboInternational https://www.youtube.com/watch?v=3iXJFDoKEvI&ab_channel=OxboI... Maybe you're right and everything would just be made with machines in the West if China wasn't cheap to source things from. But then we come back round to what do you do with the bottom half of workers...