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Defining the problem so broadly makes it less likely that it will be solved. We already have high inflation in part because of high government transfers during
by Bostonian 4y ago
Defining the problem so broadly makes it less likely that it will be solved. We already have high inflation in part because of high government transfers during the pandemic, and handing out money to 100M people with medical debt or student loan debt would aggravate this.
- suture 4y agoI find it odd that when talking about inflation or moral hazard people bring up money spent given to individuals but not about the trillions spent given to businesses. I think it is immoral for a country as wealthy as the United States to have so many people with medical debt. There should be universal, almost free healthcare. The moral imperative is far more important to me than considerations about inflation.
- A4ET8a8uTh0 4y agoI dislike adding morals into this discussion. However, there is a real question of whether society in its current state can, in fact, function well. I personally would argue that right now society is very dysfunctional and that dysfunction is primarily benefiting those at the top. And the usual issue with dysfunctional societies is that they tend to fall apart. Now, reasonable person would argue that would not be a good thing even for those on the top of the pile, but clearly no one is scared enough yet. All I want is balance. That societal balance does not exist now. Hence the tension that seems to be increasing.
- suture 4y agoI very much agree overall with your observations and points. I do think though that one should always consider moral aspects to policies and decision making since peoples’ lives are affected. Making policy based on economic theory without considering moral aspects seems like a bad idea in general.
- pjc50 4y agoReminds me of my joke policy that meets many people's stated goals yet would be universally unpopular: the government should fight inflation by confiscating money from billionaires and then destroying it.
- suture 4y agoVery nice. That would abrogate the concern that taxing the wealthy is socialist redistribution. Can’t have that accusation if you just burn it!
- dktokyo 4y agoTwo wildly different issues. Medical debt is still generally owed to payers, student loan debt (as considered in debt relief) is largely federal. The impacts of forgiveness of either would seem radically different.
- HarryHirsch 4y agohigh government transfers during the pandemic The government would like you to believe that, but a good chunk of the problem is supply-side, not demand-side.
- baremetal 4y agoMilton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
- HarryHirsch 4y agoWe have a housing crisis and an energy crisis. There's absolutely no need to drag monetary theory in when the outcome is due to failed industrial policy.
- A4ET8a8uTh0 4y agoWhy can't it be all three? I understand that it is easier to sell it as a specific political problem, but I am genuinely tired of arguing partial inflation problem, because discussing it as a whole undermines some political angle.
- pjc50 4y agoWell, he's wrong, given that output has been knocked about by a large number of non-monetary factors such as COVID, supply chain issues, the war with Russia, and (yet again) oil and gas.
- tdehnel 4y agoThe way I see it, even if there’s a war or Covid or whatever, if people don’t have more money to spend, they can’t pay higher prices. Then you get a recession. If they do have the money (because you printed more) they pay the higher prices. Then you get inflation.
- 1111567893 4y agoAnd letting people starve or die would have been better than inflation? I don't understand that point of view. It seems pretty cold to me.