progressive hunter
Diamond Member
- Dec 11, 2018
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one benefit of making profit illegal is that there will be less taxs for the government to waste,,
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It's the only driver. up until the creation of the Federal Reserve we had no inflation. Since the creation of the Federal Reserve, with the authority to create fiat money, the dollar has depreciated by 96%.
The cause of inflation is obvious.
By "one" I assume you mean businesses. Yes, when there is more money in circulation, businesses do have to raise prices. They have to pay more for labor, more for supplies, etc., etc..One does not have to raise prices.
But they were taught in school that making a profit was evil.not sure if you know this but a company needs to have profits to maintain the business and pay their employees,,
By "one" I assume you mean businesses. Yes, when there is more money in circulation, businesses do have to raise prices. They have to pay more for labor, more for supplies, etc., etc..
No, it's not.Yes, that's the only way. Only commies and dumbasses deny it.
Well, those profits are coming out of your pocket. Don't forget.But they were taught in school that making a profit was evil.
No duh?You only have to pay more for supplies if your suppliers raise prices.
Yes it is, dumbass.No, it's not.
You're a dumb ass.
Is this where you start your "profits are EVILLLLLLLL!" spiel?Well, those profits are coming out of your pocket. Don't forget.
Inflation is defined as too many dollars chasing too few goods. It can be caused by either the supply side or the demand side of the equation. Yes, the government can "print" money and that can cause inflation. But Quantitative Easing is being pulled back to the tune of 15 billion dollars a month and that number will probably go up after the December Fed meeting. Hard to make the argument that the Fed is printing money and causing inflation under those circumstances.Anyone who believes that profits cause inflation is an ignorant communist.
Government cause inflation by creating money. That's the only way to create inflation.
I haven't said anything about evil.Is this where you start your "profits are EVILLLLLLLL!" spiel?
You lie about what the OP posited. A company has to have profits before employees get raises. The OP did not argue against profits, Quite the opposite. Lower rates help biz earn profits.not sure if you know this but a company needs to have profits to maintain the business and pay their employees,,
If the government borrows $4 trillion and then pays it to businesses, it has created $4 trillion.Inflation is defined as too many dollars chasing too few goods. It can be caused by either the supply side or the demand side of the equation. Yes, the government can "print" money and that can cause inflation. But Quantitative Easing is being pulled back to the tune of 15 billion dollars a month and that number will probably go up after the December Fed meeting. Hard to make the argument that the Fed is printing money and causing inflation under those circumstances.
The problem is on the demand side and is compounded by supply chain issues. Demand for all types of goods have increased significantly, and supplying those goods has become problematic, hence price is used to control demand. And profits can most certainly cause inflation, in fact, the OP addressed that issue quite well. As profits increase in the face of a tight labor market wages will increase. That will put more dollars into the economy and without equal gains in productivity, it will not increase the supply of goods. More dollars chasing the same amount of goods is the definition of inflation.
How is that relevant to what causes inflation?I haven't said anything about evil.
I'm just pointing out that those profits come out of your pocket, and that's during a time when y'all are complaining that the prices of things is too high. That price is going somewhere.
Inflation depends on the velocity of money. That's why there was no inflation in the years following the 2008 crash even though the Fed pumped trillions and trillion of dollars into the economy.Government cause inflation by creating money. That's the only way to create inflation.
Because profits don't create new money, dumbass.
In short, it's because the government is printing money.Inflation depends on the velocity of money. That's why there was no inflation in the years following the 2008 crash even though the Fed pumped trillions and trillion of dollars into the economy.
No one was spending. The velocity of money was extremely slow. All that money being printed was virtually being buried in the back yard.
Now spending is going way up. The money has been dug up and is being spent. The velocity of money is increasing and that is why we now have inflation.