Don’t fall for the inflation scare-mongering

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    • #435306
      eridani
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      • Total Posts: 10,213

      https://robertreich.org/post/656720415116427264

      Friends. You’re hearing a lot about inflation these days. Don’t buy it. Every time the economy gets a bit of wind in its sails and workers get a little wage increase, conservatives scream about inflation and price increases.

      In reality, there’s no inflation. The economy still has huge room to grow without pushing up prices. We’re still 7 million jobs short of where we were in January 2020. Retail and office space is empty. Factories aren’t near capacity.

      In addition, companies can easily outsource extra production they need. Meanwhile, unions are so weak as to negate the possibility of wage-price inflation. The price increases we’re witnessing now are because of supply bottlenecks, as supply catches up with pent-up demand.

      To the extent we need to worry about anything, it’s industrial concentration. Too many US industries are dominated by a handful of corporations, which have the ability to push prices higher. That requires antitrust enforcement.

      But inflation itself – structural, accelerating price increases – is a total mythology.

      Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction

    • #435352
      Populist Prole
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      • Total Posts: 615

      Interesting that we never hear conservatives panic about inflation even as the rich continue to fatten their wallets and solidify their gains. I’ve heard point raised and the corporate media toady’s response was that they don’t spend their growing wealth but save ( read: hoard ) it. Well if that is so, then that pretty much disembowels the trickle-down economics philosophy then, doesn’t it?

      So when they say ( yet again; ad nauseum ) that the spending power of the rich rises all boats, and the boats don’t rise, we’re admonished to work harder, work more.

      When the tide rises and raises boats due to the spending power of the working class, only then do they bleat about inflation. But then, that’s a wholesale admission that the real power driving economic activity is the common people, not the fat cats.

      They can’t have it both ways.

       

    • #435354
      retired liberal
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      • Total Posts: 4,341

      wage increases to keep up with rising prices, causes inflation? Something doesn’t sound right here.

      We are an arrogant species, believing our fantasy based "facts" are better than the other person's fake facts.
      The older we get, the less "Life in Prison" is a deterrent.
      Always wear a proper mask when out and about. The life you save could be both yours and mine.
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      • #435405
        Populist Prole
        Participant
        • Total Posts: 615

        Something doesn’t sound right, because it isn’t right. It’s clear they’re not applying the clinical metrics of economics as such, but using economic theory as a cover for imparting conservative dogma to suit their aims as it applies to wages. We all know well their views and desires: cheap labor and shitting on the poor.

        They’re pulling the same shit by running all the “news” of the bogus labor-shortage as the pandemic eased. They’re blaming employees for not working for low wages instead of the employers for not upping their compensation.

    • #435491
      jerry611
      Participant
      • Total Posts: 1,311

      Inflation is happening. But it’s not rising wages that’s causing it.

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