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You mean more inflationary than an economy based on extraction and profiteering which has increasingly impoverished more and more of the population? What's the
by TheOtherHobbes 4y ago
You mean more inflationary than an economy based on extraction and profiteering which has increasingly impoverished more and more of the population?
What's the difference between money suddenly being worth far less [1] and real income dropping so individuals have much less spending power - which is something that has been happening for most of the population since the late 70s?
[1] Assuming inflation would be the result, which is debatable.
- jefftk 4y ago> real income dropping so individuals have much less spending power - which is something that has been happening for most of the population since the late 70s? This isn't true, though, even if you restrict to the US? Here's inflation-adjusted median individual income: https://fred.stlouisfed.org/series/MEPAINUSA672N https://fred.stlouisfed.org/series/MEPAINUSA672N It's up 40% since the late 70s.
- rybosworld 4y agoThe problem with the Fred reports is that CPI is grossly undercalculated.
- jefftk 4y agoHow much do think, say, a 1978 dollar is worth in 2021 dollars? Why?
- logicchains 4y ago>which is something that has been happening for most of the population since the late 70s This started happening as soon as the US dollar was completely unpegged from gold, allowing unlimited seigniorage to banks (the first spenders of newly printed money) via the Cantillon effect.
- deleted 4y ago[deleted]
- shjake 4y ago> You mean more inflationary than an economy based on extraction and profiteering which has increasingly impoverished more and more of the population? Yes? I mean that’s sort of what happened during Covid (savings rates increased dramatically in the short term)…