the_dunk_tank
It's the dunk tank.
This is where you come to post big-brained hot takes by chuds, libs, or even fellow leftists, and tear them to itty-bitty pieces with precision dunkstrikes.
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I don't think I get inflation.
When econ dorks say inflation has "been defeated" it doesn't mean prices go back down, right? Inflation is a rate of change, so when inflation goes down prices just get more expensive at a slower rate.
Once inflation happens it's basically locked in forever. Prices are sticky. So unless wages catch back up, buying power is permanently decreased right?
So, once inflation is defeated, nothing actually gets more affordable. It just stops getting less affordable. Am I right?
The theory is that inflation is defeated and things get more affordable when wages are rising faster than inflation. What if you're making minimum wage, the legislated rate of which doesn't rise faster than inflation you ask? Simply get another job
This is what economists actually believe
But economists also believe rising wages are causing inflation, which contradicts the very concept of wages rising faster than inflation.
It's like their entire field is made up or something.
Yea it's comical when you see pie charts of how revenue actually breaks down between costs and profits and some asshole is pointing to the 10% wage labour slice saying that it drives the ship and not the 30% shareholder profit slice
shareholder profits are only x3 higher than actual labor costs? crazy
That's an estimation. Some companies may be that profitable, but the economy overall in the US is less.
https://www.fitchratings.com/research/corporate-finance/us-corporate-profit-declines-likely-for-some-sectors-as-gdp-slows-17-04-2023#:~:text=Corporate%20profit%20before%20interest%2C%20taxes,Bureau%20of%20Economic%20Analysis%20data.
The more important point is that profit is an assumed good, an end worthy of itself. No liberal economist is ever going to tell you a business or economy is too profitable: that's the point of all this. Thus when a firm raises prices to sustain or increase it's rate of profit, that's just business; a decision so basic as to escape scrutiny. But if labor demands more pay/benefits and eats into the rate of profit? Well now that's driving up inflation! Those greedy workers just don't know when they've got enough! Pay no attention to the decision by Capital to raise prices to sustain the rate of profit, that's the only reasonable thing they could do! Their privilege in society must be preserved!
We could get off this stupid treadmill if we nationalized mature industries and ran them at cost for the public good - but there's no profit in that, so what's the point?
Capitalist economics is a religious belief system that is not meaningfully related to actually existing economies. That's the most succinct explanation of capitalist economics i can write down.
Yes, but don't let the proles hear that or they might demand compensation.