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No, it's distribution. Sounds like you want an effective political system to oversee that distribution. Me too.
by kaonashi 12y ago
No, it's distribution.
Sounds like you want an effective political system to oversee that distribution. Me too.
- logicchains 12y agoIt's distribution of money, but redistribution of purchasing power, for which money is used as a proxy.
- kaonashi 12y agoMoney isn't a proxy for anything, it's measuring and accounting.
- logicchains 12y agoWell whatever it is, creating new money and giving it to someone increases their purchasing power compared to what it was previously, which all other things being equal means a reduction in everyone else's purchasing power.
- kaonashi 12y agoThat depends entirely on how much excess capacity there is, it's not per se inflationary. If you mobilize idle capacity with new money, then you're increasing the size of the pie (more money chasing after more goods).
- logicchains 12y agoThat's why I said "all other things being equal". In the general case is which there's no excess capacity, which can be assumed if the economy isn't undergoing a recession or the like, it's inflationary.
- kaonashi 12y agoIt doesn't even have to be recession. Slow growth and high unemployment (such as what we're seeing right now) also indicate that there's plenty of room to mobilize idle capacity.