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We may need inflation to drive job growth now, and we've definitely needed inflation to drive better job growth. An office job being created because a paper co

We may need inflation to drive job growth now, and we've definitely needed inflation to drive better job growth. An office job being created because a paper company can support an additional employee due to inflation is a better situation than continuing to work in a warehouse job. Inflation will eventually recede, but that new job will give opportunity to the worker. Scale that up by a factor of millions across the country, and you've closed the income gap. That's the power of inflation.

oonerspism 5y ago
The truly poor do not have jobs, nor much hope of one in future. They are on fixed state incomes at best, which if they are lucky may have a trivial rise some years after the fact. We don't need to get terribly cerebral to note the basic mechanism of proportion, whereby $10 added to the daily food cost of a person who makes $50/day is vastly more impactful than the same $10 added to the daily food cost of a person who makes $500/day.
- TameAntelope 5y ago
  The whole point is that $10 added daily food cost results in the food producer being able to hire more employees, which means the person who makes $0/day can make $300/day now. Also these numbers are super weird. It's probably more like $10 total daily food cost going up to like $10.30, and going from making $30/day (part time minimum wage) to $50 (near full-time minimum wage).
  - oonerspism 5y ago
    The numbers were symbolic to illustrate proportional effect. I'm not seeing a great deal of causation in your theory. The same amount of food is being produced, thus the same amount of work is done - so extra employees are not required. If anything, in your closed system theory, the food producer is going to laugh and pocket extra profits.
    - TameAntelope 5y ago
      The same amount of food is not produced, more food is produced because it's the only way the food company can keep up with inflation.
      - oonerspism 5y ago
        Who is buying and eating the extra food? Did human stomach volume increase proportional to inflation? https://www.nzherald.co.nz/business/the-conversation-inflation-is-raising-prices-and-reducing-real-wages-what-should-be-done-to-support-nzs-low-income-households/EEQ7TDYHUSYGKM2OUK6BP4VJ4A/ https://www.nzherald.co.nz/business/the-conversation-inflati... Show me which countries have wage growth for lower socioeconomic demographics currently matching or outpacing CPI? It is not happening.

oonerspism 5y ago

The truly poor do not have jobs, nor much hope of one in future. They are on fixed state incomes at best, which if they are lucky may have a trivial rise some years after the fact. We don't need to get terribly cerebral to note the basic mechanism of proportion, whereby $10 added to the daily food cost of a person who makes $50/day is vastly more impactful than the same $10 added to the daily food cost of a person who makes $500/day.

TameAntelope 5y ago
The whole point is that $10 added daily food cost results in the food producer being able to hire more employees, which means the person who makes $0/day can make $300/day now. Also these numbers are super weird. It's probably more like $10 total daily food cost going up to like $10.30, and going from making $30/day (part time minimum wage) to $50 (near full-time minimum wage).
- oonerspism 5y ago
  The numbers were symbolic to illustrate proportional effect. I'm not seeing a great deal of causation in your theory. The same amount of food is being produced, thus the same amount of work is done - so extra employees are not required. If anything, in your closed system theory, the food producer is going to laugh and pocket extra profits.
  - TameAntelope 5y ago
    The same amount of food is not produced, more food is produced because it's the only way the food company can keep up with inflation.
    - oonerspism 5y ago
      Who is buying and eating the extra food? Did human stomach volume increase proportional to inflation? https://www.nzherald.co.nz/business/the-conversation-inflation-is-raising-prices-and-reducing-real-wages-what-should-be-done-to-support-nzs-low-income-households/EEQ7TDYHUSYGKM2OUK6BP4VJ4A/ https://www.nzherald.co.nz/business/the-conversation-inflati... Show me which countries have wage growth for lower socioeconomic demographics currently matching or outpacing CPI? It is not happening.