the i dont care about politics anymore thread - Page 228

Patriam1066 · #**2271** 05-26-2021, 02:48 PM

it happens to the bets of us

Pulgasari · #**2272** 05-26-2021, 04:02 PM

Why do people hate inflation?
Thinking about wages in the 1970s.

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Quote:

In an earlier post, I tried to explain what economists were trying to get at when they defined the concept of inflation:

Imagine the nominal price of everything in the economy doubled, including wages. TVs that cost $500 now cost $1000, people who earned $50,000 now earn $100,000, etc. The relative prices would all be the same; you’d still have to forgo the same number of pizzas, or work the same number of hours, in order to get a TV. Economists typically think that this kind of change isn’t really important in economic terms; our material standard of living is exactly the same, we just assigned different numbers to things.

This kind of change is what the concept of “inflation” tries to get at. We tend to colloquially think of “inflation” as meaning “an increase in the real cost of living”, but to economists it really means something more like “fiddling with the unit of account”.

So suppose this is how inflation really worked. Who would care if all the numbers change, as long as they all keep pace with each other? On Monday you earn $100 and a sandwich costs $5. On Tuesday you earn $200 and a sandwich costs $10. So what?

Jibartik · #**2273** 05-26-2021, 04:04 PM

lol I love my 100% raises I get day to day.

Jibartik · #**2274** 05-26-2021, 04:12 PM

it works for me either I my income is going to double or we get cobra commander.

Byue · #**2275** 05-26-2021, 04:13 PM

republicans discussing economic theory:

maybe if we set up a bigger buffet for the rich, there will be more crumbs for the poor?

Great idea! How do we call this?

Let's call this, trickle down bullshit.

Sure, but I think if we say economics instead of bullshit, people will believe it work.

Surely, not the educated one?

Nah, obviously but this is not our demographics anyway.

Jibartik · #**2276** 05-26-2021, 04:15 PM

Quote:

Originally Posted by Byue [You must be logged in to view images. Log in or Register.]

republicans discussing economic theory:

maybe if we set up a bigger buffet for the rich, there will be more crumbs for the poor?

Great idea! How do we call this?

Let's call this, trickle down bullshit.

Sure, but I think if we say economics instead of bullshit, people will believe it work.

Surely, not the educated one?

Nah, obviously but this is not our demographics anyway.

https://youtu.be/Pr8IyNGAqlw