Comment on All the data so far is showing inflation isn't going away, and is making things tough on the Fed
gastationsushi@lemmy.world 2 months agoWhat they tell us about money is often propaganda. My understanding about what money is changed after I realized:
A) Money is not fair, it will never make a lot of sense because the leaders who control a currency always use it to their benefit. It can take Americans tens of thousands if not hundreds of thousands of hours of labor to make a million dollars. But an ex politician / government official can earn that from a handful of 30 minute speeches.
B) Taxes never fund a government. Taxes are one of the tools to create demand for a currency. But a government creates it’s own currency, why would they need tax revenue when they are the ones creating money? This would be like saying we can’t mail anymore because we ran out of stamps. The limiting factor for how much we produce is manpower, never money.
chicken@lemmy.dbzer0.com 2 months ago
It is true that there is a lot of misleading propaganda about money in the media. It isn’t true that money is purely a conspiracy of the wealthy and follows no other logic than their interests (though, granted, government economic policy does prioritize their interests). Economics is real.
Does this contradict what I’ve argued? I’m not seeing the connection.
gastationsushi@lemmy.world 2 months ago
You originally made the argument about spending and inflation. It implies money is limited resource to a central bank.
chicken@lemmy.dbzer0.com 2 months ago
How does it imply that? What do you think causes inflation if not money going into the economy?
gastationsushi@lemmy.world 2 months ago
What caused receny inflation? That is easy. It’s caused by many things including supply chain disruptions, lack of competition, war, and non-existent government oversight.
Whatever the reason, they are making more money and workers are producing more than any time in history. So back to your point, companies need an excuse for their price gouging. The money supply is their biggest scapegoat. They also blame theft and high wages. But none of those arguments hold up to scrutiny.