3 ms·
> It sounds like we basically agree by "producers", I am not referring to wage-earning employees, but (primarily) corporations and business owners. > there ar
by listenallyall 3y ago
> It sounds like we basically agree
by "producers", I am not referring to wage-earning employees, but (primarily) corporations and business owners.
> there are lots of different things that can cause inflation
yes, true. but you've offered no support for your original claim that "wages catch up," or that the negative effects of brief periods of excess inflation are not long-lasting.
- jcparkyn 3y ago> by "producers"... Yes, that's how I interpreted it - no disagreement here. > "wages catch up," I probably should have clarified my wording a bit. I think it's clear that _total_ nominal earnings will increase [1] (because where else will the extra 6% of revenue go?), so the only question is how well distributed those earnings will be. In the short term, perhaps pretty poorly. In the long term, maybe a bit better - but that's a much more complicated subject and beyond what my original comment was trying to imply. I didn't intend to imply that there are _no_ lasting effects from excess inflation, though I can see how it'd come across that way. [1] again, assuming the inflation was caused by increased demand, not a supply shock.