4 ms·
No, it is a myth that inflation is caused by higher salaries. As you know, salaries are the last thing to increase with inflation. It's not boats that make the
by carlosjobim 2y ago
No, it is a myth that inflation is caused by higher salaries. As you know, salaries are the last thing to increase with inflation. It's not boats that make the tide rise.
- f1shy 2y agoYes and no. Inflation is very directly coupled with emission, not salaries. BUT if you have base inflation due to emission, and then do autoindexing, the win of the emission ist totaly lost. Is the primary source of hyperinflation.
- haccount 2y agoSo the right way is to use emission but make sure peoples wages don't increase competitive with inflation. Making marginal people poor and padding the pockets of people who have better options for fighting for higher wages? I'm in the later category so I wouldn't suffer but the entire concept sounds a bit evil tbh and an encouragement for inflation because corporations will get away paying their low ranking slaves less.
- f1shy 2y agoOf course is absolutely evil! Look any 3rd world country. The whole idea of inflation via emission is to dissolve people money: at the time of emission local money is say X for a dollar, the gov. uses the money at that value, pays salaries, etc, but at the time the people actually uses the money, it is X*2 for a dollar. That is the whole game. Horrible, yes, but the daily reality for most people in 3rd World countries.
- nradov 2y agoIt's not a myth. Look at the repeated economic disasters in Argentina.
- carlosjobim 2y agoInflation is real, hyper inflation is also real, such as in your example Argentina. But it is not caused by higher salaries.
- nradov 2y agoHigher salaries are both a cause of and result of inflation. Hence the positive feedback loop.
- kelseyfrog 2y agoThe strength of the statement is decoupled from its veracity.