Infinite growth on a finite planet.

GREAT IDEA.

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No, he's just misunderstanding it. My Macro textbook was written by Paul Krugman, and nowhere in it does it say that inflation is desirable for businessmen because they can "charge more". In the Keynesian model, either you're looking at the short run - where wages and prices ain't moving - or the long run - where wages and prices move, for the most part, together, with only a slight lag between prices and wages.

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neoliberal keynesian

This is just a label you use to dismiss him.

Paul Krugman is one of the world's foremost experts on recession/depression economics, the other being Ben Bernanke. You really don't understand how much worse this recession could have been, if Bernanke weren't using proper monetary policy.

Proper monetary policy? What's proper about allowing banks to slice and dice tracts of mortgage paper to achieve better ratings through trickery, and then using those improved ratings to list the assets at higher values collectively than the sum of the parts?

What's proper about allowing them to issue CDS to people who have no exposure to the bonds being insured?

It's like they let me buy fire insurance on your house. That, sir, is a recipe for disaster, and the banks brought this on themselves.

Allowing those same self-interested parties to continue managing our money? That... is insane.

Hey sheep how's it going? Federal Reserve doing good for our economy huh? Big Bernanke sure helped us out in that recession, whooo hoo!

Hey sheep

Done. Only condescending assholes use this kind of salutation, and they often do it before making an assertion without evidence.

All the 'sheep' and 'asleep/awake' imagery has been used to death. It's almost like conspiracy theorists feel that they don't even need arguments, if they can call someone they disagree with a sheep or imply that they need to 'wake up'.

Cool story bro, make sure to vote for Romney this year, I hear he's going to turn this country around in the right direction!

Unless its gas and food that is getting more expensive. Most people can't just go without those things. Oh wait, regan made it so that that isn't measured as a part of our core inflation. So you never really here about it. You only see it at the gas station and at the super market.

Furthermore it is ok if wages decrease. All we need is enough money relative to the price of goods. Not "look I have a thousand dollars but it will only be worth half that in twenty years". Of course I would want higher wages if the situation in apostrophies was the case. And it is sadly enough. There's nothing I can do but play into the systems hand

sounds like a conspiracy

Mainstream economics = Krugman Keynesian. Which is completely wrong.

“Inflation has now been institutionalized at a fairly constant 5% per year. This has been determined to be the optimum level for generating the most revenue without causing public alarm. A 5% devaluation applies, not only to the money earned this year, but to all that is left over from previous years. At the end of the first year, a dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced again by 5%, leaving its worth at 90 cents, and so on. By the time a person has worked 20 years, the government will have confiscated 64% of every dollar he saved over those years. By the time he has worked 45 years, the hidden tax will be 90%. The government will take virtually everything a person saves over a lifetime.” - G. Edward Griffin.

Productivity graph Number of hours per week needed to produce as much as a 40-hour worker in 1950 This means that the average worker now produces almost 4 times as much as he did in 1950 (with the help of technology)

Inflation Graph I wonder what happened in 1970-1971? (Hint: We went off the gold standard)

REAL WAGES)

Real wages have went down for the most part, however it's interesting to see them still rising from 1964 to 1973. There are two forces going on at the same time, the increase in productivity and wages, and inflation on the other hand. And inflation seems to be taking wages down despite the increase in productivity! So where does the value of the money go? It's lost to the new money, by however much new fiat money is created for government deficit financing.

The cost of living is going down because of technology, but going up because of inflation!

Sources:

http://groups.csail.mit.edu/mac/users/rauch/worktime/

http://inflationdata.com/inflation/Inflation/Cumulative_Inflation_by_Decade.asp

http://www.workinglife.org/wiki/Wages+and+Benefits:+Real+Wages+(1964-2004)

Inflation right now is about 2 percent. But thanks, though!

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You don't count commodities in inflation. They fluctuate back and forth due to factors outside of the relative purchasing power of your currency. If you're counting oil you're doing it wrong. There's a reason no reputable macroeconomist subscribes to this line of thought.

You are trying to add apples to oranges and take an average, then call it 'real inflation'.

Actually, the reason is they're all bought and paid Zionist stooges. /s

How is that any comfort to those whose gasoline budgets took the hit?

...and who watched their grocery bills climb?

...and who saw their electricity rates increased?

...and who saw price increases at the department stores thanks to the fuel surcharges passed along from the truck carriers who delivered the goods?

Commodities do affect the cost of living, but only in the land of pure economics do we say "those numbers don't count" while people are struggling to maintain a standard of living on a stagnant wage.

Listen very carefully.

Not counting something in inflation is not the same as saying it 'doesn't count'.

This is fucking math, not sociology. The numbers don't exist to 'give comfort' to anyone. This is just a ridiculous appeal to emotion.

Just because you're angry that gas prices have gone up doesn't mean that you can suddenly change what inflation actually measures.

I already explained why commodities aren't counted. Don't counter with a question about 'comfort'. Comfort is irrelevant.

Soooooooooo, for the sake of this sub- can we say inflation is hodgepodge and worthless because it doesn't factor in the daily essentials that influence our real lives (gas, food, water/utilities). Or is inflation just a way to tell people "hey, sheep, we got this under control, trust me, I print your (fake fiat) money."

Breed. Consume. Obey.

I call bullshit. This is not at all the reason inflation can be desirable; inflation can be desirable because it shifts debt from creditors to debtors. Inflation occurring right now would cause wages and prices to rise in tandem (as it does, in the long run) and the people left holding the bag would be - gasp - the bankers! You know, those guys you all hate? Well, the loans they made would get repaid nominally, but the money repaid would be worth far less.

So please, understand an issue before posting about it.

So...we are rats in this "economic maze theory" that we try harder and harder for less and less..and that's a good thing? I would personally put a bullet in the brain of the ass-hat that wrote that book. Only someone who is completely removed from society can think along those lines.

The FED does target 2% inflation growth rate. A 0% inflation environment would mean that you'd get no raise, without a promotion, making you sad and depressed. A very moderate inflation feels like progress.

Of course, wages should be based on productivity. And the US middle class had historically gotten a larger percentage of corporate profits by generating that productivity. However, the current CEO leadership is using a kind of TAKE_All philosophy, that is depressing working class wages. Which is having a negative effect on US economic growth.

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I love this. You haven't produced evidence to the contrary, or even made an alternative conjecture, but simply waved your hand and dismissed the inflation numbers coming from the FED, in the most condescending fashion possible.

Typical Libertarian. "GOVERNMENT IS LYING, I DON'T NEED EVIDENCE TO PROVE IT!"

You didn't answer his question. What Econ book? I find it hard to believe that what you suggest is actually a part of any legit Econ textbook.

The hell are you smoking? And why are you believing an econ book, when economical rules time and time again have been known to be just not true, at all. This is what makes it so difficult for kids to do well in economics. They understand logically what is going on, but what they are taught are in direct conflict with "how it is". I have seen two economics teachers quit because they literally now understand its all bullshit.

Large inflation in our country and the world happens when we inflate the dollar. The only way to inflate currency is by making more of it.

............................ However, you are correct, inflation is desirable, to the .1% on top that can afford it. Because they own all the money. So to make people struggle forces those people to work harder for less, thus creating more profit. ........................... "The government tries to keep inflation at 3 percent" ... where are you getting your magic info from. I swear to god if it is that text book, burn it. In the last 3 years we have inflated the dollar 20%. Fancy that.

What value is there in silver?

You might want to brush up on your econ.

I like how you are taking an econ class, probably for the first time, and probably entry level, and are suddenly talking like you are an economics expert and downplaying others economic knowledge. That's cute.

Inflation is a good thing if you are selling

It's also a good thing for debts. Wages generally rise behind inflation, which means debts can be easier to pay off, or at least keep pace. If the currency and economy deflate, wages drop, and debts become larger and harder to pay off.

A small amount of inflation is good for any growing and healthy economy. If you think otherwise, you need to keep your mouth shut until you take more economics classes and get out of the 101 level classes. Deflation is what caused The Great Depression, and arguably our recent recession where we saw some brief deflation at the start.

You are not an expert on economics because you opened an econ book for the first time in your life. Get over yourself.