4 ms·
So what’s your solution to the average Joe losing a great deal of wealth just from the massive printing?
by a-user-you-like 4y ago
So what’s your solution to the average Joe losing a great deal of wealth just from the massive printing?
- PaulHoule 4y agoStop printing. Also some of the effects are temporary or one time. For instance the supply chain problems are still going on. Different things are out of stock from what were out of stock a year ago, but the effects are severe. Most notably a person who can’t get the $40,000 car they want is not going to spend that $40,000 on something else. The Trump administration also slapped a 20% tariff on imports from China which obviously makes many things more expensive. If people try to get around this by wage increases they could transform an 8% one time price increase to an 8% price increase every year. We’ve got the current advantage that people haven’t complete acquiesced to inflationary psychology. When you go to McDonalds and see a Big Mac meal costs more than $10 you might think ‘crap I can’t afford that!’, an attitude that will drive prices back down. If you'd lived with high inflation for 10 years you might not slow down your consumption faced with high prices and worse, think ‘I better buy that now because it will be more expensive later’, which accelerates inflation.
- a-user-you-like 4y agoI agree stop printing. But I’d argue employers should adjust due to the 40% printing that had already happened, AND that we don’t print anymore after that.