25 ms·

The more currency flooding the economy, the less wealthy the rich people are. Inflation occurs because the owners need to remain wealthy, hence prices go up eve

by sbf501 4y ago

The more currency flooding the economy, the less wealthy the rich people are. Inflation occurs because the owners need to remain wealthy, hence prices go up everywhere. If it were possible for the top few to do with a little less, prices wouldn't have to skyrocket.

seer-zig 4y ago
I disagree about framing it as the top few. I recommend you look into Islam's Zakat system for something that actually works, and is fair across the board.
merely-unlikely 4y ago
I'm skeptical of that claim since the rich hold more assets than dollars. To the extent inflation hurts the economy then your claim is true but that is a second order affect. All else equal, inflation can simply lead to asset inflation in which case the rich maintain their wealth. In economics circles inflation is generally considered a tax on the poor who only hold cash and whose wages are slower to rise vs price inflation.
- WalterBright 4y ago
  > I'm skeptical of that claim since the rich hold more assets than dollars You should be. I doubt the rich hold any dollars at all. They invest it all. There aren't any Scrooge McDuck cash vaults. (Criminals often do hold lots of cash, and they try to get rid of it by laundering it.)
WalterBright 4y ago
> Inflation occurs because the owners need to remain wealthy, hence prices go up everywhere. The fun thing about HN is I hear all sorts of unique economic theories not found in any econ book. P.S. If the wealthy (or everyone else) needs more money, and just raising prices will work, why don't they do that anyway? The answer is Supply & Demand, it's the Law, and is in every econ textbook.
- sbf501 4y ago
  > why don't they do that anyway? Ever heard of a company called Apple? They raise prices all the time because they can. Same with AT&T, or banks ATM Fees, or gas prices. Right now gas prices are at an all time high, and so are gas profits. > The answer is Supply & Demand, it's the Law, and is in every econ textbook. Also, that's Econ 101. Which isn't quite reality, it's idealized for simplicity because it is an introduction to macroeconomics. But I don't want to digress into Austrian vs. Modern theory because neither of us will do justice to that.
  - merely-unlikely 4y ago
    > Right now gas prices are at an all time high, and so are gas profits Definitely not an all time high, but yes a rapid increase. According to a quick quarterly chart I pulled up, a barrel of oil was last over $100 in June 2014. It spent most of the period 2010-2014 above $80 (it's currently $86). I remember paying > $5/gallon at the pump back then. I see a peak in June 2008 at $140. Profits are also now coming down, at least according to Exxon's report today: "(Bloomberg) - Exxon Mobil Corp. gave an early snapshot of its earnings for the third quarter, during which refining margins shrank while profits from natural gas kept climbing. "The largest US energy company said in a filing Tuesday that margins within its energy-products segment, which includes oil refining, were as much as $2.9 billion lower compared with the second quarter. That segment posted $5.3 billion in net income in the three months through June."
  - WalterBright 4y ago
    > They raise prices all the time because they can. Why don't they raise the iphone to $10,000? > Right now gas prices are at an all time high, and so are gas profits. Have you ever noticed gas pump prices going down? I'm curious as to your explanation for that? Do you notice that pump prices change on a daily basis? What's your explanation for that?
  - Bud 4y ago
    Which prices is Apple raising? Have you gone and reviewed how much Apple's products cost in the 80s and 90s? You might want to do that, quickly, before the laughter gets so loud that you are deafened.

by sbf501 4y ago

seer-zig 4y ago

I disagree about framing it as the top few. I recommend you look into Islam's Zakat system for something that actually works, and is fair across the board.

merely-unlikely 4y ago

I'm skeptical of that claim since the rich hold more assets than dollars. To the extent inflation hurts the economy then your claim is true but that is a second order affect. All else equal, inflation can simply lead to asset inflation in which case the rich maintain their wealth. In economics circles inflation is generally considered a tax on the poor who only hold cash and whose wages are slower to rise vs price inflation.

WalterBright 4y ago
> I'm skeptical of that claim since the rich hold more assets than dollars You should be. I doubt the rich hold any dollars at all. They invest it all. There aren't any Scrooge McDuck cash vaults. (Criminals often do hold lots of cash, and they try to get rid of it by laundering it.)

WalterBright 4y ago

> Inflation occurs because the owners need to remain wealthy, hence prices go up everywhere. The fun thing about HN is I hear all sorts of unique economic theories not found in any econ book. P.S. If the wealthy (or everyone else) needs more money, and just raising prices will work, why don't they do that anyway? The answer is Supply & Demand, it's the Law, and is in every econ textbook.

sbf501 4y ago
> why don't they do that anyway? Ever heard of a company called Apple? They raise prices all the time because they can. Same with AT&T, or banks ATM Fees, or gas prices. Right now gas prices are at an all time high, and so are gas profits. > The answer is Supply & Demand, it's the Law, and is in every econ textbook. Also, that's Econ 101. Which isn't quite reality, it's idealized for simplicity because it is an introduction to macroeconomics. But I don't want to digress into Austrian vs. Modern theory because neither of us will do justice to that.
- merely-unlikely 4y ago
  > Right now gas prices are at an all time high, and so are gas profits Definitely not an all time high, but yes a rapid increase. According to a quick quarterly chart I pulled up, a barrel of oil was last over $100 in June 2014. It spent most of the period 2010-2014 above $80 (it's currently $86). I remember paying > $5/gallon at the pump back then. I see a peak in June 2008 at $140. Profits are also now coming down, at least according to Exxon's report today: "(Bloomberg) - Exxon Mobil Corp. gave an early snapshot of its earnings for the third quarter, during which refining margins shrank while profits from natural gas kept climbing. "The largest US energy company said in a filing Tuesday that margins within its energy-products segment, which includes oil refining, were as much as $2.9 billion lower compared with the second quarter. That segment posted $5.3 billion in net income in the three months through June."
- WalterBright 4y ago
  > They raise prices all the time because they can. Why don't they raise the iphone to $10,000? > Right now gas prices are at an all time high, and so are gas profits. Have you ever noticed gas pump prices going down? I'm curious as to your explanation for that? Do you notice that pump prices change on a daily basis? What's your explanation for that?
- Bud 4y ago
  Which prices is Apple raising? Have you gone and reviewed how much Apple's products cost in the 80s and 90s? You might want to do that, quickly, before the laughter gets so loud that you are deafened.