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No 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, b
by djrobstep 4y ago
No 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).