3 ms·
Remember a "pay freeze" is a pay cut. Inflation does not stop just because the executives tie large amounts of their compensation to short term stock moves.
by olliej 3y ago
Remember a "pay freeze" is a pay cut. Inflation does not stop just because the executives tie large amounts of their compensation to short term stock moves.
- x86x87 3y agonot to mention layoffs, where you effectively have to pick up the work for your fellow workers that are out of a job.
- olliej 3y agooh yeah, or "we made the work environment shitty to save money, and a bunch of your coworkers left" so now you have more work _and_ a shittier environment. Though this often occurs at the same time :-/
- x86x87 3y agoi think it ebbs and flows. if the environment becomes shitty enough eventually you will go out of business. so you will see corrections or correction attempts if things are bad enough. the tragedy of software development is that a small investment upfront could prevent massive investments down the road, yet nobody will try to do the corrections upfront.
- mensetmanusman 3y agoAlmost everyone is getting pay-cuts then. Inflation with money printing is a round about way of raising taxes it seems.
- gottorf 3y ago> Inflation with money printing is a round about way of raising taxes it seems. This happens all the time, and it's called debt monetization, when the Fed buys Treasury debt instruments.
- deleted 3y ago[deleted]
- olliej 3y ago> Almost everyone is getting pay-cuts then. ...yes? > Inflation with money printing is a round about way of raising taxes it seems. Inflation in principle has "value" to the economy as it ostensibly reduces the cost of debt over time. Of course it's kind of moot if the inflation is primarily a product of profiteering and price gouging - haven't multiple studies in multiple countries now shown that 50+% of the current "high inflation" is the result unwarranted price increases in monopoly and semi-monopoly industries? This is ignoring things like published inflation rates not including inflation of the single large expense for 99% of the populace. The idea that inflation only just hit 8%, when year to year rent increases for the same property were routinely in excess of 10% for a decade is absurd. As is the value of a property (for the purpose of property taxes/council rates) not increasing at the same rate - which means offloading costs onto tax payer vs property owners, Yay!
- Dig1t 3y agoExactly. It's actually a pretty smart move by the feds. New/increased taxes are extremely unpopular. This way they get all the benefits of shiny new social programs spending without getting the bad press of higher taxes.
- nly 3y agoFriedman literally described Inflation as a government imposed stealth tax.