4 ms·

> The numbers are significant in that wages increasingly have been recognized as a driving force in inflation. Honestly shocked that anyone actually believes t

> The numbers are significant in that wages increasingly have been recognized as a driving force in inflation. Honestly shocked that anyone actually believes this nonsense. Demand for wages is up because the price of not dying is up. Rent is skyrocketing, food is more expensive, literally every aspect of life is now a subscription or some other nickel-and-dime scheme. I won't even talk about the current state of medical billing. But also, the premise just doesn't make any sense. How can higher wages cause inflation -at all-? Money isn't being printed to cover these wages, the money is transferred from employer to employee. No part of that is inflationary. No extra money is being created, the value of the dollar is not reduced. If you want to insist that higher wages cause inflation, you must also accept that CEO wages and corporate profits are causing a proportional amount of inflation. Or maybe siphoning hundreds of billions of dollars out of the US economy to be hoarded forever in offshore bank accounts is having an effect on the value of the dollar? Nah, it's definitely 20-something's buying $12 store-brand eggs and paying $8,000/mo rent on a studio flat.

hnfong 3y ago
> siphoning hundreds of billions of dollars out of the US economy to be hoarded forever in offshore bank accounts is having an effect on the value of the dollar? It's really hard for individuals or even corporations to "hoard" cash forever in offshore bank accounts and cause inflation (nor deflation). The money isn't locked in vault (not physical, nor electronically). They generally end up right back into the market because those banks offers loans for a good chunk of their deposits. Or they buy bonds or MBS which are effectively the same thing. Same for parking assets in a financial institution. Whatever assets you buy the original sellers gets the money you put in, and they use it on something else. The only real way you could personally take money out of circulation is to withdraw physical cash and burn it (Inadvisable, in some places this is illegal) or bury it in the ground.

hnfong 3y ago

> siphoning hundreds of billions of dollars out of the US economy to be hoarded forever in offshore bank accounts is having an effect on the value of the dollar? It's really hard for individuals or even corporations to "hoard" cash forever in offshore bank accounts and cause inflation (nor deflation). The money isn't locked in vault (not physical, nor electronically). They generally end up right back into the market because those banks offers loans for a good chunk of their deposits. Or they buy bonds or MBS which are effectively the same thing. Same for parking assets in a financial institution. Whatever assets you buy the original sellers gets the money you put in, and they use it on something else. The only real way you could personally take money out of circulation is to withdraw physical cash and burn it (Inadvisable, in some places this is illegal) or bury it in the ground.