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The principle of inflation is to dynamically adjust: - Available products in the world, - Number of people who can afford them. With Covid, we didn’t produce
by laurent92 5y ago
The principle of inflation is to dynamically adjust:
- Available products in the world,
- Number of people who can afford them.
With Covid, we didn’t produce for 2 months in 2020 and we’ve produced slower in 2021. And all governments distributed free money. So, in theory there is clearly not enough goods produced for everyone in the world. Prices should rise dynamically until 10% fewer people can afford them than in 2019.
Where are the people who can’t afford buying things? There should be a diminution of 10% global consumption, where is it? Where are the people whose company won’t be able to match inflation, even if they unionize?
- adflux 5y agoGlobal consumption expressed in...? That currency which inflated
- laurent92 5y agoExpressed in goods. The role of an economic system, communist capitalist or any other, is to organize the delivery of goods. We’ve produced 10% fewer goods in 2020, someone must deprive themselves. The inflated currency doesn’t matter, who’s the people who are depriving themselves while I’ve made a fortune and bought a house? I see we’re a whole lot who won the jackpot with Covid, who are the losers and why aren’t they already revolting?
- lrem 5y agoNo. Ignore currencies, which are just our best approximation of a reasonable measure of wealth. The problem is that over the course of pandemic the world has produced less actual wealth. Unless we somehow reduced waste, we should now be able _on average_ to afford less.
- pjc50 5y ago> Where are the people who can’t afford buying things? The already-marginalized? "The Trussell Trust reported a 33 per cent increase in the number of three-day emergency food parcels in 2020-21 compared to 2019-20," https://commonslibrary.parliament.uk/research-briefings/cbp-8585/ https://commonslibrary.parliament.uk/research-briefings/cbp-... > There should be a diminution of 10% global consumption, where is it? Hospitality and travel.
- bserge 5y agoUh, in poorer countries/regions? Take the EU, as you go down the GDP/capita list, prices for everything including basic goods have risen massively, wages have not. All the best stuff goes to the richer regions, the leftovers (if any) are overpriced for locals, everyone is materially poorer, not even land/housing is cheaper because foreign investors gobble it up. It's rather serious in some places.