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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