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This is nonsense If everyone makes $10 more a day there is no ""mobility"" in the percentage sense, but everyone is better off. If you ask a hobo that makes $

• swader999 5y ago
  And if bread rises to $100 a loaf?
  • cerved 5y ago
    That would suck but that's not how inflation works
    • jkepler 5y ago
      Its how it worked in the Weimar Republic in the 1920s, in Argentina in the 1980s, Zimbabwe after 2011, and in Venezuela in recent years. Especially if you look at bond market yield curves going negative, and consider that massively indebted governments don't have any politically viable options to solve their debt problem other than default through massive inflation. It could totally happen. Governments don't have a good option.
      • cerved 5y ago
        If everyone's wealth increased by $10 because they produced $10, the price of a loaf doesn't magically become $100. You're mixing up monetary policy with macroeconomics. Though often correlated to a degree, they are not the same. The Weimar republic adding zeroes to the DM is not the same as wage increase due to economic growth
  • savant_penguin 5y ago
    Then the hobo is fucked However, inflation does not derive from poor people making more money. It comes from insane government spending. Of course, if you try to achieve better life conditions through government spending you can end up with bread at $100.