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I remember, something...something, before this Quantitative Easing round that "Printing money" or "easing liquidity" wouldn't affect inflation. That was the bas
by csomar 5y ago
I remember, something...something, before this Quantitative Easing round that "Printing money" or "easing liquidity" wouldn't affect inflation. That was the basis of much of these Pandemic packages where the government pushed money to businesses and people.
Well, that turned out really wrong didn't it. Of course, the politicians blamed the pandemic logistics, the war, the ..., but anything but their strategy. I wonder who Altman is looking for to blame when an $25/hour minimum wage turns out disastrous for everyone involved. Of course, that would be anything but his genius idea.
There is one thing true (at least in the long-term) about economy: You can't bullshit your way around the economy by manipulating numbers. A $25/hour minimum wage doesn't build more homes, doesn't create a new metro line, doesn't improve shipping logistics, doesn't increase the literacy rate, doesn't build a hospital and doesn't teach a doctor.
- paxys 5y agoMinimum wage increases aren't going to be funded by printing more money but rather through corporate profits. How would that cause inflation?
- Ekaros 5y agoIncreased demand of things the current minimum wage workers can't afford? Thus increasing price of them and thus affecting inflation. On other hand most of that if not more due to chain effects would go to increasing GDP...
- culopatin 5y agoMinimum wage increases are going to be washed away by the immediate inflation generated by the massive jump in buying power on the demand side and by the inflation generated by the increase in supply costs caused by the increase in wages. Not to mention many companies would probably move more of their operations to other countries and just sell their stuff online and not have to hire anyone here.