It’s not nonsense, we’ve seen deflation destroy economies plenty of times.
The issue is that what economists are saying is don’t ask/expect lower prices, demand higher wages. Higher wages produce basically the same result without breaking the economic system.
Maybe you want the economic system to break, but for most people that would be bad and lead to a lot of death and suffering.
I mean, if you go back 100 years in the US, there has always been some inflation (as that’s how our economic model works). The cost of living crisis isn’t caused by inflation, but larger macro economic policies.
The problem isn’t some inflation or deflation. It’s having constantly positive inflation, the levers for which are pulled by insiders. At best they’re trying to prevent all forest fires, and the dry brush keeps accumulating until we get a fire too big to put out. At worst they’re just picking whichever interest rates they’ve been bribed to pick.
Corporate profits keep going up, CEO pay keeps going up, inequality keeps going up, but real income has not kept up at all. We aren’t the beneficiaries of inflationary monetary policy. It’s functional wealth extraction, not incompetent management.
This isn’t what Keynes wanted at all. He expected the inflation money would go towards public works and we’d have a 15-hour work week, not funding bond holders and a gradually increasing work week. We adopted half of his rationale as a post hoc rationalization for the Nixon Shock.
It’s not nonsense, we’ve seen deflation destroy economies plenty of times.
The issue is that what economists are saying is don’t ask/expect lower prices, demand higher wages. Higher wages produce basically the same result without breaking the economic system.
Maybe you want the economic system to break, but for most people that would be bad and lead to a lot of death and suffering.
What we’ve got now is even more broken! Forever inflation is not a good idea.
I mean, if you go back 100 years in the US, there has always been some inflation (as that’s how our economic model works). The cost of living crisis isn’t caused by inflation, but larger macro economic policies.
Source: https://www.usinflationcalculator.com/inflation/historical-inflation-rates/
The problem isn’t some inflation or deflation. It’s having constantly positive inflation, the levers for which are pulled by insiders. At best they’re trying to prevent all forest fires, and the dry brush keeps accumulating until we get a fire too big to put out. At worst they’re just picking whichever interest rates they’ve been bribed to pick.
Corporate profits keep going up, CEO pay keeps going up, inequality keeps going up, but real income has not kept up at all. We aren’t the beneficiaries of inflationary monetary policy. It’s functional wealth extraction, not incompetent management.
This isn’t what Keynes wanted at all. He expected the inflation money would go towards public works and we’d have a 15-hour work week, not funding bond holders and a gradually increasing work week. We adopted half of his rationale as a post hoc rationalization for the Nixon Shock.