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Because it's doesn't.
So then why are people arguing against a higher minimum wage?
Because it's doesn't.
So then why are people arguing against a higher minimum wage?
You are a cruel bastard...
At least that is what it seems like on the surface. But you are also correct.
Any form of government means tested benefits creates the moral hazard that we will make people more dependent and less independent. It's much more cruel to incentivize people into becoming dependent pets, than it is to incentivize them to become independent.
I totally agree with this part of your ideology.
And the money wont be there if a living wage is instituted, force the corporations to raise wages and they will leave, make the government print money and you will need a wheelbarrow of cash to buy bread. Its been done before, and it doesnt work....
Hyperinflation in the Weimar Republic - Wikipedia, the free encyclopedia
Social Democracy for the 21st Century: A Post Keynesian Perspective: Real Output Loss in the Austrian and German Hyperinflations of the 1920s
The inflation problem in a Germany started in 1921...but GDP grew in '21 and '22.
Only in 1923, when hyperinflation was out of control, did the GDP drop.
And then only for one year.
Hyperinflation can cause GDP loss...but GDP loss is not necessary to create hyperinflation.
That's your assumption...not mine.So that indicates that inflation does not equate to a bad economy.
Your correlation is backwards. the drop in GDP was caused by the shutdown of their industrial base. Hyperinflation was caused by the drop in GDP - too few goods being produced to meet demand.
Look, when the crisis started in 2007 The Fed was holding about $800 billion on their books, now its over $4 trillion and counting, thats not out in circulation yet, its just sitting there- they are using it to pay interest to help prop up the banks- but they will have to unwind that sooner or later. Hyperinflation wont be caused by money in circulation, it will be caused by new money going into circulation.
Oh? Werent you and your colleague advocating giving everyone in the country a living wage by printing unlimited money?
Youre missing the point, its not about production and its not about aggregate demand, its about perceived value- our markets and finances are run by confidence as much as it is by numbers. The rest of the world uses the Dollar as a reserve currency because of its perceived stability, lose that perception and you will have the world abandoning the Dollar as a benchmark currency and then countries like China and the EU will sell off their Dollar denominated bonds to the tune of $12 Trillion. That will have massive repercussions on the strength of the Dollar.
All countries in the world are run by fiat currencies but thats beside the point. We are more Keynesian than chartalist (or MMT).
Yup. I dont know about you though since you were wondering how come inflation hasnt crept up despite all the QE so far.Do you understand how new money "goes into circulation"?
Then you arent discussing chartalism at all yet you claim on post #122 that "It doesn't happen just by the government printing money."No, we were discussing how a living wage is not only good for people (who then have enough money to live on), but it is also good for aggregate demand. There is headroom to create new demand without leading to demand-pull inflation - you should be able to increase demand up to a point where the economy starts to suffer some shortages before prices are pushed up. Nobody ever suggested that there were no limits on this. Inflation is the limit.
The price will not stay the same if the US starts printing trillions in new money. Thats elementary economics.When you go to buy something, do you pay what you perceive the price should be, or do you pay the number on the price tag?
That will change once you start printing massive amounts of new money. The Chinese already protested when there was a delay on the debt ceiling by Congress. Print trillions of new cash and you will see the bond market explode.That, plus our government doesn't do anything too stupid. That's what makes for a good reserve currency. Our country produces enough, we are politically stable, and we export a large number of fiat dollars.
Wrong. Do it and see what happens. The other countries of the world will abandon the Dollar s a reserve currency and you will definitely see hyperinflation.If there was a massive sell-off of our bonds (there won't be), we would simply exchange dollars for those bonds. That is what stability means. Nobody's U.S. bonds will ever be defaulted on. And as long as our economy continues to produce, they will always have something of value to buy with American dollars. Perception has nothing to do with it.
Google chartalism and Keynesian economics. Im not going to hold your hand.Explain the difference.
Yup. I dont know about you though since you were wondering how come inflation hasnt crept up despite all the QE so far.
Then you arent discussing chartalism at all yet you claim on post #122 that "It doesn't happen just by the government printing money."
Be specific- because you entered into an argument where one side advocated a guaranteed living wage to be fully funded by printing money nonstop- is this your position? Yes or no?
The price will not stay the same if the US starts printing trillions in new money. Thats elementary economics.
That will change once you start printing massive amounts of new money. The Chinese already protested when there was a delay on the debt ceiling by Congress. Print trillions of new cash and you will see the bond market explode.
Wrong. Do it and see what happens. The other countries of the world will abandon the Dollar s a reserve currency and you will definitely see hyperinflation.
Google chartalism and Keynesian economics. Im not going to hold your hand.
I wasn't wondering. I understand why QE hasn't led to inflation. And, unlike you, I can explain the reasoning behind my positions. You just make bald assertions.
Do yourself a favor and stop butting into the middle of a debate and take one thing out of context and treat it as another, thats just trolling because I was talking about chartalism and how it affects hyperinflation. Keep it up and I'll ignore you from now on.This shows that you don't understand what chartalism is, or how it works. In post 122 I was referring to hyperinflation. Chartalism is a different subject.
Its not an assertion, its fact. The Fed currently now has about $4 trillion on its balance sheet- this money isnt in circulation. And sooner or later it will have to unwind that balance sheet. And when that happens expect a deduction of at least 24% of the US GDP.
Do yourself a favor and stop butting into the middle of a debate and take one thing out of context and treat it as another, thats just trolling because I was talking about chartalism and how it affects hyperinflation. Keep it up and I'll ignore you from now on.
Production Capacity =/ GDP. You took his argument and changed it to something that fit yours.My post was in response to your buddy's (Cleve guy's) statement:
'Hyperinflation only happens when production drops by a ton.'
And as I proved, since hyperinflation in Weimar Germany began before a drop in GDP, his statement is incorrect (and PoS's was correct).
The Fed is a part of the government, whether you want to admit that or not. And "unwinding" one's own internal accounting ledger will mean absolutely no change to the outside world. The government "owes itself dollars." And you think that's a problem?
The government can create dollars non stop, none of it matters, there is no debt and now this? Many, your theories are all over the place.
The government can create dollars non stop, none of it matters, there is no debt and now this? Many, your theories are all over the place.
Yes, you are repeating yourself. Have read it all before. Repetition does not make invalid points magically valid.
I don't think that, nor have I ever suggested I did.