I’m going against orthodox thinking. Too little money is inflationary. In this the age of a COVID-19 recession when businesses large and small face downsizing and going out of business, when those who have money will not be able to purchase what they want and need. That is of cause those businesses have enough money to stay in business and not go through bankruptcy and even say by, by. They will need money to survive. They will need money for production. So logic tells me that to avoid inflation just after the pandemic there has to be enough money to keep businesses going. Too little goods can cause inflation then in this case too much money!
Showing posts with label inflation. Show all posts
Showing posts with label inflation. Show all posts
Saturday, February 13, 2021
Sunday, March 6, 2016
Steve's barking; How we look at employment inflation is all wet
Fresh water American economist, and American salt water economist may misunderstand why there is no wage inflation in the US of A. First of all there is wage inflation in certain sectors of the economy, as it should be, as in supply and demand.
Again because of trade counties are able to under cut manufacturing wages therefore there shouldn't be wage inflation in manufacturing.
What about the service sector that is creating all those jobs?
There should be wage inflation there, shouldn't it be Especially if a country is at full employment.
Again if earnings aren't high enough jobs would be lost. Losing of jobs means supply
and demand kicks in, wages stagnate or possibly go down. Supply and demand economics.
Now let's assume that manufacturing jobs are brought back the United States, inflation ( not necessarily wage) would in all probability ensue or profits would be reduced.
There is a good chance that in the near future there will be wage inflation brought by the government because of the minimum wage going up. My fear is panic by those who worry about wage inflation, destroying the economy.
My main purpose of writing this is indicate that one has to constantly look at what is happening and challenge one self if the economics of the past is the economics of the present and the future.
Again because of trade counties are able to under cut manufacturing wages therefore there shouldn't be wage inflation in manufacturing.
What about the service sector that is creating all those jobs?
There should be wage inflation there, shouldn't it be Especially if a country is at full employment.
Again if earnings aren't high enough jobs would be lost. Losing of jobs means supply
and demand kicks in, wages stagnate or possibly go down. Supply and demand economics.
Now let's assume that manufacturing jobs are brought back the United States, inflation ( not necessarily wage) would in all probability ensue or profits would be reduced.
There is a good chance that in the near future there will be wage inflation brought by the government because of the minimum wage going up. My fear is panic by those who worry about wage inflation, destroying the economy.
My main purpose of writing this is indicate that one has to constantly look at what is happening and challenge one self if the economics of the past is the economics of the present and the future.
Wednesday, May 13, 2015
Steve's barking; Here comes the inflation train
The inflation train is coming.
It has nothing to do with money, but everything to do with drought.
The globe, is suffering from severe drought in it's most productive agricultural areas, such as Texas, California, New Zealand and Australia. Disease is killing off our fine feathered friends, and our swines are less in numbers. This will cause true inflation.For all you know nothings out there, the wrong thing to do to fight supply and demand inflation is tightening the money supply. To fight inflation you don't make it more expensive to borrow money to increase supply of food. Other area not effected by the drought and disease can farm.
The conventional wisdom of cause will point a finger and blame the Feds for the this food inflation.
It has nothing to do with money, but everything to do with drought.
The globe, is suffering from severe drought in it's most productive agricultural areas, such as Texas, California, New Zealand and Australia. Disease is killing off our fine feathered friends, and our swines are less in numbers. This will cause true inflation.For all you know nothings out there, the wrong thing to do to fight supply and demand inflation is tightening the money supply. To fight inflation you don't make it more expensive to borrow money to increase supply of food. Other area not effected by the drought and disease can farm.
The conventional wisdom of cause will point a finger and blame the Feds for the this food inflation.
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