Comment on Imagine if Amazon and all jobs out there were cooperatively owned?
shalafi@lemmy.world 3 weeks agoEasily triggered? Yeah, dad’s point was, more to the point, “if everyone had a bunch of money”, which was kinda the theme of my post. And I gather you understand inflation quite well. Would have hoped you could tease the theme from a couple of sentences.
This fucking place. Everyone ready to go off on the “bad guys”. No wonder it’s the worst echo chamber I’ve ever participated in.
sp3ctr4l@lemmy.dbzer0.com 3 weeks ago
Yes, you apparently are.
I mean, please refer to my comment that has triggered you to see an explanation as to how a far too lopsided distribution of wealth actually affects a society.
Inflation, price level rises, don’t ust… happen perfectly evenly across all elements of the economy at exactly the same time, to exactly the same degree.
Broadly speaking, those closest to the recieving end of the proverbial money spigot, well they get to spend or invest that money first, and then the rising price levels slowly trickle down, spread out to other segments of the economy.
You don’t seem to get the idea of variable velocities of money, and how they work in a debt based, fractional reserve monetary system.
It is actually private banks that mechanistically do the vast amount of ‘inflation’, ie, multiplying of money.
Roughly, ever 1 dollar that gets deposited into a bank becomes 10 dollars, through being loaned out to other people.
But, different sectors of the economy have different multiplying factors, different velocities at which those multiplying factors occur.
You can say, print a fuckton of money and throw it at CDO holding banks to prop them up from going bankrupt.
This is a huge amount of low velocity money, its not moving anywhere, its there to shore up failing assets.
Or, you could print the same amount of money, but distribute it in small amounts directly to the broad populace, who will then basically immediately spend it or deposit it, the velocity and multiplication factor of that money will be much, much greater than the former scenario.
Or or, you can achieve something similar in terms of stimulate the ground level economy by taxing the wealthy and giving to the poor, which in net takes slow, low velocity money, and makes it fast, high velocity, without ‘printing’ any new money.
This is all actually a lot more complicated than you seem to think it is.