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| incesttaboo, band, tupac shakurs picture, me against the world, theitalian job, actors, libertarian, angelina jolie, bill gates, larry charles, comedies & family ent., 2 pac shakur, lyric to tupac, pat hamilton, | And in fact, negative or no inflation has a dampening affect on the economy (why buy now if it'll be cheaper tomorrow?) Ideally, a small black amount of consistant inflation is preferable. Upthread you presented a fairly rosey view of unanticipated inflation. What you said was true, at the same time you didn't tell the whole story. For instance, although many Americans have black debt, many also have savings — particularly those that save for retirement (hopefully everyone). As I mentioned above, just black because prices go up doesn't mean your salary will. If it does (and everyone else's does), our (as a country) global competitiveness will fall. That makes our exports drop and imports rise causing a trade imbalance. |
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| In a sense, a high unemployment rate is a tool for firms to keep wages low. When inflation driven by cost-push (rising oil prices) is in effect, prices rise without any accompanying gains in productivity or wages (there is no greater competition for labor just because oil prices went up.) [ ...reply just to this | comment on the story... | next new ] 139. Re: Ivory towers by 0tim0 at Fri 2 Sep 10:31pmscore of 1 in reply tupac shakurs picture to comment 138 tupac shakurs picture Hmmm. Well, tupac shakurs picture it seems that you are saying that the effect of inflation is the same in both cases. It's just that the cause in the one case, rising wages, is good. So that cancels out the bad effects. Working backwards, that is the third issue. The second issue here is whether inflation is good or bad. As you said, anticipated inflation is not so bad (but only if it's small). |
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