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1) I'm not against people making more money. I'm definitely for it. I'm against a COVID check I keep getting and don't need, just because I'm married and my c

1) I'm not against people making more money. I'm definitely for it. I'm against a COVID check I keep getting and don't need, just because I'm married and my coworker is not. 2) I definitely don't think I know everything, or anything really. 3) When a very basic idiom taught in entry level economics proves true again and again, I'm not sure how much complexity is required to prove it false. At that point it just feels like fighting for the point of fighting. I don't want to debate goods and bads, economic complexities, etc. I am just stating what is taught in entry level classes appears to be correct.

314 5y ago
Does Econ101 dig into the differences between demand-side and supply-side inflation? Or what happens when you try to hide the deflationary effects of debt destruction through money printing? I ask because I'm unfamiliar with the basic curriculum in economics, although in the sciences some of the early concepts that we are taught include: * Correlation is not causation * Confirmation bias should be overcome by posing relevant testable questions rather than relying on anecdotes.
- pram 5y ago
  Yes the aggregate demand/supply model covers demand and supply shocks, which can correspond to inflationary and recessionary conditions.
soylentnewsorg 5y ago
But there's nothing complex here. You are wrong on a very simple econ101 type level. The covid check was economic stimulus. Like what Bush W did for example. It literally stimulates the economy every time, because for every one of you and me who don't need it and save it, by investing it in companies via mutual funds, there are people who immediately spend it on things like food, also giving money to companies. Now here's what happens when you don't give money to companies: they have to take loans with interest. That interest is later paid by customers via increased prices, because the supply side cost is now higher. Companies also go out of business w/o money. You now have less supply, for inelastic demand (because it's food). This increases prices. So, econ101: prices went up. Because supply chains were affected by the pandemic, and when supply cost goes up, you pay more. If you didn't have the stimulus checks, they would have gone up more. Much more. Paying attention in econ101 helps know this. What you missed by not paying attention, is they were referring to printing money and Not giving it to people. Like the government having to fund itself, or the king funding himself. A stimulus check is trickle up economics, and Lowers prices. So econ101 taught us the opposite of your takeaway from that class. That class was of course called microeconomics, not econ101.
- silisili 5y ago
  I promised myself I wouldn't reply further as I really don't want to debate anything. But this comment is so nonsensical I have to let you know that. > A stimulus check is trickle up economics, and Lowers prices. How, in your mind, does this sentence make any sense? Don't worry you can really lay into me, I won't reply.
  - imtringued 5y ago
    Car companies shut down production because they predicted low demand which caused car prices to spike. If the president told the car companies that he is going to give consumers enough money to buy cars car manufacturers wouldn't have slowed down production but instead doubled down on producing more, prices would be low because there is enough supply.
    - hammock 5y ago
      We did this experiment already with used cars, it was called cash for clunkers, and it raised the price of used cars. If Biden forgives student loans is that going to lower the price of tuition?
      - soylentnewsorg 5y ago
        > and it raised the price of used cars since the point of the program was to stimulate production of New cars, which it did, creating an increase in GDP and jobs, the experiment was a success. If Biden forgives student loans it will not lower the price of tuition. Since the point of student loan forgiveness is to help people get on their feet, and buy houses and cars, it not lowering the price of tuition would also mean a success. I'm guessing you have a house mortgage. If I pay that off for you, will it lower the price of your house? I guess there's no point in doing it then. Because you wouldn't take that monthly mortgage payment and instead buy more stuff or invest in stocks, boosting the economy. You would clearly spend it on sponsoring a super-spreader own-the-libs rally.
        5y ago
hn_throwaway_99 5y ago
> When a very basic idiom taught in entry level economics proves true again and again, I'm not sure how much complexity is required to prove it false. At that point it just feels like fighting for the point of fighting. Except "your basic idiom" actually turns out to not be true in a lot of cases. It turns out that when you look at cases of notable inflation, these are nearly always accompanied by substantial supply side shocks, and that's also happening now. For a good research article of a related example, see https://www.nber.org/system/files/chapters/c9160/revisions/c9160.rev2.pdf https://www.nber.org/system/files/chapters/c9160/revisions/c....

314 5y ago

Does Econ101 dig into the differences between demand-side and supply-side inflation? Or what happens when you try to hide the deflationary effects of debt destruction through money printing? I ask because I'm unfamiliar with the basic curriculum in economics, although in the sciences some of the early concepts that we are taught include: * Correlation is not causation * Confirmation bias should be overcome by posing relevant testable questions rather than relying on anecdotes.

pram 5y ago
Yes the aggregate demand/supply model covers demand and supply shocks, which can correspond to inflationary and recessionary conditions.

soylentnewsorg 5y ago

But there's nothing complex here. You are wrong on a very simple econ101 type level. The covid check was economic stimulus. Like what Bush W did for example. It literally stimulates the economy every time, because for every one of you and me who don't need it and save it, by investing it in companies via mutual funds, there are people who immediately spend it on things like food, also giving money to companies. Now here's what happens when you don't give money to companies: they have to take loans with interest. That interest is later paid by customers via increased prices, because the supply side cost is now higher. Companies also go out of business w/o money. You now have less supply, for inelastic demand (because it's food). This increases prices. So, econ101: prices went up. Because supply chains were affected by the pandemic, and when supply cost goes up, you pay more. If you didn't have the stimulus checks, they would have gone up more. Much more. Paying attention in econ101 helps know this. What you missed by not paying attention, is they were referring to printing money and Not giving it to people. Like the government having to fund itself, or the king funding himself. A stimulus check is trickle up economics, and Lowers prices. So econ101 taught us the opposite of your takeaway from that class. That class was of course called microeconomics, not econ101.

silisili 5y ago
I promised myself I wouldn't reply further as I really don't want to debate anything. But this comment is so nonsensical I have to let you know that. > A stimulus check is trickle up economics, and Lowers prices. How, in your mind, does this sentence make any sense? Don't worry you can really lay into me, I won't reply.
- imtringued 5y ago
  Car companies shut down production because they predicted low demand which caused car prices to spike. If the president told the car companies that he is going to give consumers enough money to buy cars car manufacturers wouldn't have slowed down production but instead doubled down on producing more, prices would be low because there is enough supply.
  - hammock 5y ago
    We did this experiment already with used cars, it was called cash for clunkers, and it raised the price of used cars. If Biden forgives student loans is that going to lower the price of tuition?
    - soylentnewsorg 5y ago
      > and it raised the price of used cars since the point of the program was to stimulate production of New cars, which it did, creating an increase in GDP and jobs, the experiment was a success. If Biden forgives student loans it will not lower the price of tuition. Since the point of student loan forgiveness is to help people get on their feet, and buy houses and cars, it not lowering the price of tuition would also mean a success. I'm guessing you have a house mortgage. If I pay that off for you, will it lower the price of your house? I guess there's no point in doing it then. Because you wouldn't take that monthly mortgage payment and instead buy more stuff or invest in stocks, boosting the economy. You would clearly spend it on sponsoring a super-spreader own-the-libs rally.
      - 5y ago

hn_throwaway_99 5y ago

> When a very basic idiom taught in entry level economics proves true again and again, I'm not sure how much complexity is required to prove it false. At that point it just feels like fighting for the point of fighting. Except "your basic idiom" actually turns out to not be true in a lot of cases. It turns out that when you look at cases of notable inflation, these are nearly always accompanied by substantial supply side shocks, and that's also happening now. For a good research article of a related example, see https://www.nber.org/system/files/chapters/c9160/revisions/c9160.rev2.pdf https://www.nber.org/system/files/chapters/c9160/revisions/c....