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Now, listen up, you insignificant bipeds.
127.0.0.1 wrote:
I give you the key to Economics. Here is everything you need to know: There's no such thing as a free lunch. ----------------- Money supply is irrelevant. It's the total of human labor that is the dividable commodity of economics. Money supply inflation is a crucial device required to change the balance of what we are paid to make room for new players in the market. The only reason we don't reduce the wage of others to acquire that new economic space for new players is that people would never stand for it! They would riot because they're too stupid to realize what it means. When a new kind of product emerges people must set aside money to buy it, and so they must stop buying as much of YOUR product, this is "bad" for you, but good for you also, because then that is the way that NEW products like computers and cell-phones become available. Farmers will be paid less, and they will raise their prices as much as they can to find the new "greatest price" for their goods "that the market will allow". This causes inflation, but we wind up redividing our wealth and alllocating it to a different pie of expenditures for each product. So instead of reducing some people's wages and raising others which they would never stand for, or understand it, and they would riot. So instead of riots we conceal from them that they will now be paid less, via INFLATION, rising prices, and the inflation of the dollar is used to make this adjustment. Steve |
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