Fixing Inflation

[task0778]

Increasing wages is paramount to fixing inflation

This is absolutely, positively, beyond a shadow of a doubt wrong. What do you think happens when wages go up? Answer: prices go up, every effing time. And that is inflation in a nutshell. When the gov't arbitrarily says you have to pay this person more wages without additional productivity, that is inflationary.

 

[initforme]

This is absolutely, positively, beyond a shadow of a doubt wrong. What do you think happens when wages go up? Answer: prices go up, every effing time. And that is inflation in a nutshell. When the gov't arbitrarily says you have to pay this person more wages without additional productivity, that is inflationary.

So we need to lower wages? That's beyond dumb. Workers will quit en masses.

 

[task0778]

So we need to lower wages? That's beyond dumb. Workers will quit en masses.

I didn't say wages had to be lowered. But raising wages without a corresponding increase in productivity is inflationary. That is just reality.

 

[Flopper]

If, G-d willing, we have an election in November and Trump wins, he faces three real crisis: Invasion, WWIII and Inflation.

I think Trump will have to declare a National Emergency to handle all three simultaneously,

Inflation can be handled in two ways: delete government programs and departments and/or release the suppressed US Patents that will lower the cost of energy to pennies and create real sustainable economic growth.

Cutting government programs is 100 years overdue and should be done. It serves a twofold purpose of lowering inflation and increasing freedom

A deflationary depression is not ideal and is the usual way out of inflation. It need not be so

As of July 11, 2024, the US inflation rate is 2.97%, which is lower than the long-term average of 3.28%. This is down from 3.27% the previous month and 2.97% the previous year. Nothing needs to done about inflation. It is coming down and according to the FED will be close to 2% by the middle of next year.

Thankfully what you propose will not happen even if republicans controlled both the congress and the Whitehouse because they do not want to be blamed with the worst recession of the 21st century.

 

[Flopper]

So we need to lower wages? That's beyond dumb. Workers will quit en masses.

The U.S. is "no longer an overheated economy" with a job market that has cooled from its pandemic-era extremes . What we need is for the job market to stay at the current level. The Fed is planning on one interest rate cut by the end of the year. If job figures are down next month it could come sooner. If the job market heats up again, the cut may not come this year.