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I gotta say, I should not be surprised at people advocating for inflation. But I am. High inflation has been the boogeyman, foe and underminer of economies wo
by mc32 4y ago
I gotta say, I should not be surprised at people advocating for inflation. But I am. High inflation has been the boogeyman, foe and underminer of economies world-wide, left-leaning and right-leaning, so I didn't see it coming. But here we are, people advocating for the erosion of purchasing power!
But, if it were a wining combination I guess we can expect Biden to embrace Inflation, Advocate for it and pronounce that he will redouble efforts to accelerate inflation so that we can all look forward to a better economy and better future with High Inflation.
This is WILD. I can't believe my eyes. Despite the Zimbabwe, Brazil, Turkey, etc., experience, people are making the case FOR inflation? My word.
- avgcorrection 4y agoYou are not saying anything.
- mc32 4y agoWhat is there left to say when someone advocates for something so far outside common understanding? It defies belief. But, if most economists are wrong and Biden is right, well, we can look forward to his administration proudly proposing higher inflation.
- Alupis 4y agoPerhaps I'm too cynical - but I think we're going to see that boogeyman trotted out in full swing if the election doesn't go a certain way. What interesting times we live in... even inflation has been politically weaponized now.
- avgcorrection 4y agoI gotta say, I should not be surprised at someone treating economics like a religion. And I am not.
- mc32 4y agoOk. Show me economies that did well with high inflation. Where did that work, where is it working today? Are economists wrong to treat it as an electric third rail?
- avgcorrection 4y agoEconomies doing well wasn’t even the initial claim. The keywords were progressive, less inequality.
- ForHackernews 4y agoAssuming wages rise (they are), debtors benefit from inflation as their debts become less onerous in real dollar terms. Most Americans are debtors.
- bequanna 4y agoIn the short term, maybe. Also, you’re assuming debt has fixed interest rates and asset prices will continue to rise forever. Neither of those things is likely to be true in the medium term (~5 years). It’s complex. You can’t just look at high inflation in a vacuum without also considering that interest rates will rise (and possibly overcorrect) in response to high inflation.
- mc32 4y agoSo, Brazil had it good when they had high inflation because debtors... Wait... doesn't CC rates go up during inflationary times? But Ok, maybe we should follow the example of Brazil, right?
- bsaul 4y agoIt’s very different if your debt is in your national currency ( that will loose value if your country turns to shite), or in another currency. US can print money as long as it wants to pay its debts. It may have an impact on the interest rate for future debts, but at least it won’t default on the current ones.
- deleted 4y ago[deleted]
- Ekaros 4y agoHousing is pretty big counter-point for this. Everything is fine if you don't need to move, but if you need to you are unlikely to sell for what is left of your capital or be able finance with similar monthly payment. You are locked in your current house...
- chasd00 4y agoi think this would only work with fixed rate debt which narrows it down to home and, maybe, auto loans. However, there are variable loans for everything (including homes) and they're pushed heavily since there's more profit on a variable rate loan.
- bequanna 4y agoI don’t understand your second paragraph. Are you saying: “If inflation is good, Biden will support more of it”?