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Taking money from people who aren't spending it and giving it all to people who will spend it all immediately doesn't fix poverty. It just causes hyperinflation
by josephcsible 4y ago
Taking money from people who aren't spending it and giving it all to people who will spend it all immediately doesn't fix poverty. It just causes hyperinflation.
- djrobstep 4y agoNo it doesn’t. The Nordics don’t suffer from hyperinflation, in spite of their much larger welfare states. Redistribution increases demand in the short term, but in the longer term production shifts accordingly to match. Which really is the whole point: Changing the economy to produce more of what ordinary people need.
- josephcsible 4y ago> in the longer term production shifts accordingly to match Isn't the long-run aggregate supply curve basically completely price inelastic?
- djrobstep 4y agoI’m saying that production shifts to produce more of what poor people want (food etc) and less of what that rich people want (Lamborghinis etc).