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No one wants to talk about the actual problem, and will blame government printing money. What’s different now from any point in the last 12 years is that we are
by 7speter 4y ago
No one wants to talk about the actual problem, and will blame government printing money. What’s different now from any point in the last 12 years is that we are at full employment. Going over that causes the economy to overheat. As a study partner for an economics course put it (he took more economics than I did): too many hands competing for goods, the prices go up.
- chasd00 4y agoRight, the thing the Fed is doing by raising rates is increasing unemployment but trying to not come right out and say it. Increasing unemployment decreases demand and therefore prices. A hard recession is how this is going to end IMO.
- andrekandre 4y ago> Increasing unemployment decreases demand and therefore prices. said differently (and maybe cynically): the only way to reduce prices is to make people jobless and potentially homeless, destroying families and potentially peoples lives in the process... maybe i am crazy, but this seems like a really bad way to run an economy?
- chasd00 4y agoYou’re not crazy and it is bad but that’s how it operates. At the macro scale, the people making these decisions are just looking at percentages on a spreadsheet and turning knobs to get them where they want them.
- WalterBright 4y ago> Going over that causes the economy to overheat The notion of an "overheating" economy always sounded like nonsense to me. > full employment Those figures are misleading because a great many people permanently left the work force during the pandemic and are not counted as unemployment.