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252

We won’t fix inflation while economists stay in denial about its causes (www.smh.com.au)

submitted 2 years ago by Zagorath@aussie.zone to c/australia@aussie.zone

34 comments fedilink hide all child comments

Non-paywall link.

TL;DR: economists are still stuck in the idea of the market as a perfect force for reaching optimal outcomes. They're ignoring the simple fact that businesses are putting prices up purely to increase profits. And that they can do this because the economic ideal of perfect competition (where many small firms compete with near-identical products) does not exist. We have a small number of very powerful businesses—oligopolies—in nearly every market for consumer-facing goods.

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[–] bastion -5 points 2 years ago (2 children)

The inflation is, quite simply, because we've been printing money since the early 2000's, and the shit hits the fan eventually. Every time any company fails due to massive corruption, it's bought out with printed money. ..that, and, the covid "please don't riot" checks. Fiscal irresponsibility and corruption, plain and simple.

Free market capitalism is a myth - capitalism doesn't work without a separation of corporate and government interests, and in free market capitalism, the government gets bought.

[–] somethingsnappy@lemmy.world 2 points 2 years ago (1 children)

You couldn't be more wrong. It's all about debt. You think inflation is worse than debt and payment on debt and how easy it is to get into debt and never recover?

[–] bastion 0 points 1 year ago (1 children)

'Fiscal irresponsibility' = debt. Inflation is just from the gov't printing money to buy our way out of the debt, and distribute the debt to the whole system.

The problem is, the underlying debt isn't paper. It isn't even gold. It's ultimately borrowed from actual material resources, and systems of nonmonetary wealth. ..and that kind of debt can't be printed away.

When those systems of material resources and nonmonetary wealth run dry, they'll continue printing until the value of the money is less than the paper it's printed on.

So, it's not a matter of "it's all about inflation and not about debt." It's a matter of debts that will be paid by natural law, coming due in the form of inflation.

[–] somethingsnappy@lemmy.world 0 points 1 year ago (1 children)

Oh God, are you an armchair economist? Speaking as a scientist. Whoah.

[–] bastion 0 points 1 year ago

yawn

[–] MotoAsh@lemmy.world 1 points 2 years ago (1 children)

You're right except for the printing money thing. Don't ruin a good idea by planting it in shit.

[–] bastion 1 points 1 year ago

Sshhh.. ..you had me at "you're right."