Comments by "" (@tekannon7803) on "Stoic Finance"
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Mr Jones says inflation is the single greatest threat to society. But look at what a top university professor of economics says what inflation is really about. Professor Richard D. Wolff has this to say. "There is no relation between the amount of money in circulation and prices. There’s no necessity that prices go up. The simplest example: let’s imagine that the money supply has increased; the Federal Reserve increases the money supply. Let’s assume it goes into the hands of the bank, or it is distributed across society. Okay; now there is a lot more money in the economy. Who knows this? Business. They know that the public has more money to spend because they know what the Fed is doing, whether it’s increasing the money supply or not. At this point the employer makes a decision i.e. the manufacturer, the company that sells any service. The know people have more money to spend, so here’s what they decide. Either the way you deal with that is to raise your price. Why? Because people have more money to spend, so they can reasonably expect to get the higher price. Or, and this is the key issue, you can decide that the way you want to respond to the extra money in the economy is by ordering more goods to sell for that extra money. The second one tends to gives people jobs making the extra goods. The first one, jacking up the price, that’s not getting anyone a new job. That’s just getting the seller more, because there’s more money in the economy. Therefore, employees don’t set prices, employers do. They’re the ones who decide what price gets put on goods consumers purchase. The decision of employers that is the cause of every inflation. Employers set the price and they are doing this to make more profits. This is how a capitalist economy works. The employees have nothing to say. This is not about government printing money or any of the things you hear. The key issue here is what you’re not supposed to hear. Profit driven price increases assures that the capitalist system works for the employers." So what gives?
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