To Fight Inflation We Need More Poor People
I have been pretty vocal about the current inflation environment is a cause of FED and corporate greed in a failing capitalistic society. Inflation is the sustained increase in the general price level of goods and services in an economy over a period of time. When prices rise, purchasing power falls, and the same amount of money buys fewer goods and services.
There are many factors that can contribute to inflation, including increases in the cost of production, increases in taxes and government spending, and changes in monetary policy. However, one factor that can contribute to inflation is corporate greed and price gouging. Central banks attempt to limit inflation and avoid deflation in order to keep the economy running smoothly, but things have gotten out of hand.
One tool that governments can use to combat inflation is through monetary policy, which involves adjusting the supply and demand of money in the economy. This can be done through various instruments, such as changing interest rates or buying and selling government securities. So far interest rate hike have not been doing a great job. They have cooled off some markets, but consumer spending is going strong and companies keep raising prices. IF you have not been to a grocery store lately you are in for a shock...
However, there is another tool that governments can use to combat inflation, which is to create financial instability. This can involve implementing policies that lead to layoffs, lower investments and unemployment, as well as encouraging consumer choices that put pressure on companies to lower their prices.
Layoffs can be an effective tool for combating inflation because they increase the overall supply of labor in the economy. This can lead to wage decreases for those who are still employed or are looking for employees, as companies compete for a lager pool of workers. Lower wages can then lead to less consumer spending, which puts downward pressure on prices. By implementing layoffs, the government can reduce this upward pressure and help to keep inflation in check.
In addition to layoffs, encouraging consumer choices that put pressure on companies to lower their prices can also be effective in combating inflation. For example, if consumers start opting for cheaper alternatives to more expensive products, companies may be forced to lower their prices in order to remain competitive. This can help to keep inflation in check, as companies are less able to pass on higher costs to consumers.
Overall, while monetary policy is the primary tool that governments use to combat inflation, creating financial instability through measures such as layoffs and encouraging consumer choices can also be effective in keeping prices in check. At this point it seem like the only want to fight inflation is to make everyone unable to live. I just don't get why we always have to bear the brunt of the hardship. I'd love to see companies bear it because I'm sick of seeing earning reports of slower sales, but record profits!
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Record earnings by the oil companies, pharmaceutical companies and utility companies have been nuts this year. Never mind the rest. When the shit hits the fan and nobody can afford any of it, then what……we all know that answer.
They blame people for not preparing for the hard times and then companies fail and ask for government bail outs.
I wouldn't mind prices going down due to all the layoffs but I just don't think they will really drop the prices much. The profit margins will drop for them if that does happen but I just kind of doubt that the material costs will go down after they went up over the past few years.
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Companies will do whatever it takes to keep profits up I think the until the government steps in and caps profits companies will keep up the gouging.
That's the issue though. The companies themselves will shut down if the price of the materials doesn't drop down too if prices are fixed. So it needs to be fixed for everything in the economy and just setting it for a few things won't work out.
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It's been pretty crazy we have let it go in this long. I know I'm switching away from big brands at the grocery store.
Do you actually think layoff will always be a good idea
I don't but the government and the fed need it to happen.