Why is inflation actually a problem? If everything just gets numerically adjusted upwards by a fixed amount...

Why is inflation actually a problem? If everything just gets numerically adjusted upwards by a fixed amount, doesn't nothing actually change in terms of ratios and such?

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Because fag bosses don't raise wages in line with inflation. So shit just becomes more expensive AND people stop working, because what's the point if you can't buy anything.

One of the big problems with post boomer generations, and especially what Gen Z is walking into, is real wages - simply put shit you NEED to buy has massively increased in prices, while wages have only increased in small increments. An example would be housing in my country - a 2 bedroom house in 1980 would cost 80,000 - a modest blue collar wage was around 30k a year.

Cut to now - the same house costs nearly 2 million. The wages have gone up to 50,000.

in pre-nazi germany, children would play with stacks of money, because that was cheaper than buying toys. I don't want burgers to cost billions of dollars even if that makes me a septillionaire.

It prevents people from saving. Unless you want your wealth to evaporate you have to trust it over to a system of coke snorting gamblers.

Inflation also requires businesses to increase prices, along with wages. These increases are by no means synchronized, so guess which gets increased first.

These pretty much. It necessitates holding assets, land being of massive desire because you can landlord like a prick. I have no problem with landlords mind you, I consider it all a consequence of poor economic management

The cost of living goes up but wages tend to not rise alongside this raise in prices; at least not to an extent to make up for this difference in cost. People, also, spend less because money is worth less and they're getting less of it; however, that's more of a consumerist lamentation.

This. Bunch of greedy bastards. I work a far more labor i tensive job, yet i Get paid even leas than fast food workers

If bosses did raise wages, it would just cause greater inflation.

This is more or less why it happens at all. It's a lot easier to devalue the currency than it is to cut wages.

how? whats your reasoning behind this?
wouldn't it reactivate the economy? if people have more money they will buy more and that is better for capitalism

Not if the massive corporations stopped paying execs 100 times their previous value.

Which won't ever happen, so it's a moot point. Enjoy dying childless and alone in a cage you pay 90% of your wage to rent.

People do not like parting with money. This is why we have minimum wage law.
This is also why the government funds stimulus when households arent spending. The economy is predilected on growth and those who have money desire to retain as much as possible

>if people have more money they will buy more
I.e. demand increases

why dont you just work fast food then estupido

ihop near me is paying $20/hr lmao

more people have more money -> more spending -> more money chasing the same amount of goods -> higher prices

it does kinda work when there's significant "slack" in the economy, like when there's factories and such mothballed idle because there's not enough demand for all the stuff they could theoretically be making. That isn't really the case today, though

isn't that the goal of every company/business?

Inflation fluctates. It's not like your meemustonku only go up. "But hurr durr boomers bad" quit being such redditards.

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Because i like working outside on my own, rather than in some noisy grease hole. Shoveling snow is better than handling a deep fryer

minimun wage exist bc otherwise bosses would pay shit

Instead of doing that, since 2008 global governments have simply been printing more money.

In the late 90's, a host of semi-retarded right wing politicians suggested "just printing more money", which was met with howls of laughter. Rightfully so. Since 2008, every major western government has done just that - print more cash. Just like we saw Zimbabwe or pre-war Germany do.

They claim it's "not the same" as they will eventually pay back the cost by cutting welfare and entitlements etc, and while they do that, they just go out and spend even more, and then print more money. The same shit happened to Japan in the 1990's - and it's now 2022 and they still haven't recovered (and probably never will).

The big difference here too is that they don't simply "print" more money blindly - the money is "financed" by them buying essentially shares off of private corporations. So not only are we getting raped in the ass by inflation - it's being done for a profit by gazillionaires like Bezos.

Inflation compounds for goods as they are "processed". Consumer goods are the most heavily "processed" goods. You will be hit by inflation most.

more money chasing the same amount of goods -> more production -> more jobs

Thats what i said. Bosses would pay the lowest amount possible, because they want to keep as much money as they can.

weren't the fluctuations in your graph crashes?

More chink jobs. Not much help to humans

its a really sinple equation

when unemployment is super low, everyone has a job, so everyone has money, and in order to hire, conpanies must raise wages to attract employees, then they raise prices to cover that.

unemployment is like 2% right now, so thats whats happening. When you see a company increase prices, its usually because their own labor or supply costs went up.

when unemployment is higher, companies dont have to raise wages to find employees, because theres already a lot of jobseekers.

Usually the goal in the USA is to stay at about 5-8% unemployment and 1-3% inflation. Outside of economic disruption, thats usually where we are.

Right now theyre keeping unemployment very low so people are busy with work during covid. And Democrats are unlikely to roll it back and put people out of work with elections coming up. If Republicans win, theyll probably cut it back, causing a minor recession for a while, which everyone knows has to happen eventually.