Originally posted by @kazetnagorraIf I did it was an error.
You literally said universities spread propaganda.
Originally posted by @metal-brainHyper-inflation is caused by increased money supply but the
Inflation is caused by increasing the money supply.
jury is still out on what causes moderate inflation. And what
is "money supply"? Probably not entirely under anyone's control.
Originally posted by @wajomaTo be precise: it is not.
Inflation is precisely an over supply of currency.
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Originally posted by @wolfgang59Money is a tool for measuring that which we value, excuse me if I dumb this down as much as possible, please be grateful for the time I've spent.
To be precise: it is not.
If there is an economy that has a million dollars of currency floating about in it then everything of value in that economy is measured on a scale according to the number of those units.
Now goobermint decides to release more dollars into the economy (there are a number of ways for this to happen, could be their bank buddies doing it with debt, quite complicated and clearly over you head, main point for you is goobermint directly or indirectly allows currency supply to surpass the wealth in the economy)
So now there are 1.2 million dollars floating around in the economy but nothing extra of value has been created, naturally after an instant injection of 200k into the economy nothing much happens, wages stay the same, but as that extra currency disperses into the economy prices begin to go up (but not actual wealth) eventually your wages don't buy what they used to, and people get uppity for more money, and so the circle starts again.
Notice how I state my case and conclusions all you have is "it is not", all Kaka Notion has is wiki links.
Originally posted by @wolfgang59Define moderate inflation.
Hyper-inflation is caused by increased money supply but the
jury is still out on what causes moderate inflation. And what
is "money supply"? Probably not entirely under anyone's control.
Originally posted by @metal-brainIt would depend on rate and duration and probably other factors.
Define moderate inflation.
Do you want me to say 1% - 8% so that you can come back with "What about 8.1%" ?
What do you think moderate inflation is?
Originally posted by @wolfgang59No that is not what drives inflation. The ideal situation is that the currency is aligned with the amount of wealth in an economy, if there is new wealth created or new resources discovered then the supply of currency can be allowed to increase to match those things. The goobermint allows currency supply to surpass the wealth in the economy, it's a scam, it's another tax.
What rubbish.
You don't think economic activity might have a teensy-weensy effect?
Note how I can explain my position and all you have is 'what rubbish'.
Originally posted by @wolfgang59If I knew I would not ask. I don't think you know either. I think you are making up excuses to avoid answering. Duration? Please stop the BS.
It would depend on rate and duration and probably other factors.
Do you want me to say 1% - 8% so that you can come back with "What about 8.1%" ?
What do you think moderate inflation is?
Originally posted by @metal-brainLow unemployment theoretically leads to higher wages (although I have questioned the strength of this correlation for a while), which causes inflation. The increased cost of production due to the higher wages causes businesses to raise prices. Inflation erodes real wage growth (amongst other things), so interest rates rise to keep it in check. Higher interest rates can depress growth because people are incentivized to save their money instead of spending it in the economy.
I am very skeptical of this claim. If you want people to earn higher wages without an increase in the minimum wage you have to have a low unemployment rate. Isn't it the Fed Reserve that is causing the recessions and shifting the blame?
https://www.reuters.com/article/us-usa-fed-rosengren/fed-says-it-whipped-u-s-unemployment-maybe-too-well-idUSKCN1LT ...[text shortened]... ery time the poor start to get some relief the FRS crashes the party with higher interest rates.
Originally posted by @ashiitakaHigher wages do not necessarily lead to inflation. Here in Michigan we have a high er than average minimum wage. It did not lead to inflation.
Low unemployment theoretically leads to higher wages (although I have questioned the strength of this correlation for a while), which causes inflation. The increased cost of production due to the higher wages causes businesses to raise prices. Inflation erodes real wage growth (amongst other things), so interest rates rise to keep it in check. Higher inte ...[text shortened]... rowth because people are incentivized to save their money instead of spending it in the economy.
Low inflation rates lead to more saving instead of spending. People tend to spend a devaluing currency. That is why inflation gets worse and it leads to even more inflation. People are in a rush to spend it before it becomes worthless.
Originally posted by @ashiitakaBullcrap! Wages have not even kept up with inflation. Wages have been falling in nominal terms. Adjust the minimum wage in 1968 with inflation using an inflation calculator.
The danger is that the U.S economy could overheat.
https://smartasset.com/investing/inflation-calculator
Originally posted by @metal-brainI wasn't talking about wages. I was talking about Mr Trump's growth-above-else focus. The question is, how is that growth being achieved? Is it helping bring down the debt?
Bullcrap! Wages have not even kept up with inflation. Wages have been falling in nominal terms. Adjust the minimum wage in 1968 with inflation using an inflation calculator.
https://smartasset.com/investing/inflation-calculator
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Originally posted by @metal-brainThere is a difference between saving by stuffing your money under your mattress (when it is devaluing every second because of inflation) and putting it in a bank, where interest negates and sometimes even exceeds inflation. Better yet, you can put your money in an asset management firm. This era we live in with close to zero interest rates is just because of the crash.
Higher wages do not necessarily lead to inflation. Here in Michigan we have a high er than average minimum wage. It did not lead to inflation.
Low inflation rates lead to more saving instead of spending. People tend to spend a devaluing currency. That is why inflation gets worse and it leads to even more inflation. People are in a rush to spend it before it becomes worthless.