What's the real reason they say they want 2% inflation?
What's the real reason they say they want 2% inflation?
Jose Adams
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Aiden Russell
who said this
Dominic Jenkins
To keep the Ponzi afloat and slowly leech money from the poor and middle class.
Hudson Brown
So more wagies get into income tax levels so feudalism can be restored.
Xavier Diaz
They say 2% because if you boil the frog too quick it may jump out of the pot
aka this:
Josiah Cox
>“Modern economic theory says that inflation expectations are an important determinant of actual inflation,”
this all just seems like nonsense
Brayden Walker
If inflation is 0% or lower it creates bigger unemployment problems in downturns because wages are sticky, or so the theory goes
Adrian Hill
Exactly
Adam Brooks
It's a psycological economic reason called liquidity trap
Josiah Martin
Yeah, basically this. People tend to be fine when they are getting raises but pay cuts are very hard to implement without losing employees and thus losing productivity. In times of recesion, a pay cut would be a good idea but after countless tries companies just figured out it's pretty much counterproductive to try to lower the wages of their employees. Inflation just does it more naturally without people noticing the loss of money. There are other reasons like interest rates but the wages one seems to be more easily understood for people without any background in economics.
It's funny how people here have no education but spout shit like they figured this thing out themselves. The economy is hard, even for people that have studied it for countless years so people without some basic knowledge tend to fall for some stupid conspiracy theories.
Jackson Allen
inflation = hidden tax.
Hudson Sullivan
This is exactly why BitcoinSoV (BSOV) was made. BitcoinSoV is the Worlds first Mineable and Deflationary Token. Its bitcoin but deflationary but with faster transactions and compatible with all erc20 wallets. BSOV is going to explode as awareness grows about how detrimental hyperinflation is to people.
Austin Perez
Money is a measure of the debt society owes you.
Inflation assigns time preference to those debts so that more recent contributions are weighted heavier.
Samuel Turner
To create the illusion that they are credible ((financial institutions)) and that they can actually control inflation. Meanwhile in reality, inflation is close to 5% and Real interest rates are sub zero.
David Brown
sorry for doubting you Mr Shekelberg
You truly are our greatest ally
Sebastian Barnes
This is an argument against inflation
Ethan Adams
so basically wagies can't do math
Evan Phillips
It's low but not close enough to deflation to spook
Deflation would wreck the gdp
Adam Jones
2% compounding skims a lot of wealth relatively unnoticed.
Jayden Cox
But virtually every recession we've had for the last 100 years involved deflation, not inflation
Liam Cox
i hear this often that deflation is bad but i don't understand why. don't consumers want to pay lower prices?
Jacob Brown
Hey cunt, in the United States FREEDOM is supposed to come first. Fuck your economic efficiency and whatever else. Your economic degree is worth less than the place mats on my dinner table.
Oliver Russell
Yeah that’s the problem, according to the theory. If they aimed for 0 inflation instead of 2% or whatever, there would effectively be even more deflation on average, making the unemployment problem worse
David Jones
this. they can't steal your savings too fast or you might wake up.
Julian Harris
Jackson Baker
Inflation is a 2% per year tax intended to punish those who hold dollars