• CableMonster@lemmy.ml
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    7 months ago

    Inflation is the biggest tax on the middle class and poor, its also the most effective one because they dont realize its happening.

      • CableMonster@lemmy.ml
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        7 months ago

        Inflation, price gouging is the boogeyman they use to pretend someone else is doing it.

          • davel@lemmy.ml
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            7 months ago

            I think CableMonster might be in the neoclassical economics camp, which insists that “inflation” is definitionally “money creation,” that they’re essentially synonyms. They refuse to entertain any other possible explanations for a rise in prices, and that’s why price gouging can’t be a component of inflation and therefore must be a boogeyman.

            • HappycamperNZ@lemmy.world
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              7 months ago

              Im going to risk it and see what their reasoning is.

              Strongly believe I would disagree with them as I literally tutor this topic at university level, but let’s see.

          • CableMonster@lemmy.ml
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            7 months ago

            I am sure. I can teach you have this works if you truly are curious, but I am not going to argue if you dont understand. The Fed only creates inflation, at best they can create less inflation.

            • HappycamperNZ@lemmy.world
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              7 months ago

              Fuck it, ill bite. I’ll either have something else to consider or a better prepared argument for when someone argues with me next time.

              Let’s start with the fact we have 5% inflation in my country, down from ~8% as we push up interest rates and deliberately drive down GDP including to -0.2%.

              Oh, and I’m not from the US so fed means nothing.

              • CableMonster@lemmy.ml
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                7 months ago

                I believe every country has fiat currency, so you have your version of the fed. Also dont trust the number they give you for inflation, its bullshit.

                So in the US, the money is created via the federal revserve and it is done by loaning out money, the only reason inflation rate decreases is that they raise the interest rate so people want less money, so they loan out less money. That money is paid back to the fed, but new money has been made. If you are still interested, I can tell you how this takes away wealth from the poor and middle class.

              • CableMonster@lemmy.ml
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                7 months ago

                In the US, the money is created via the federal revserve and it is done by loaning out money, the only reason inflation rate decreases is that they raise the interest rate so people want less money, so they loan out less money. That money is paid back to the fed, but new money has been made. If you are still interested, I can tell you how this takes away wealth from the poor and middle class.

    • Rentlar@lemmy.ca
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      7 months ago

      Yeah. Ask anyone if they know the difference between the real vs. the nominal value of money. If they don’t they probably don’t realize how much they’re being screwed.

      • HappycamperNZ@lemmy.world
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        7 months ago

        Wait till you see people complaining that we are deliberately pushing up interest rates and trying to cause a recession.

        The lose their shit.