Printing money out of thin air causes inflation.

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SocialAnchovy@reddit

Collectively raising prices is not technically “inflation”. But the outcome is the same which is why people call it inflation.

If the money in everyone’s bank account loses its value because the cost of living increases rapidly across the board due to price hikes, it sure feels like inflation.

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Well, there is a reason why people collectively raise prices. One of those reasons is printing money. If everyone in a supply demand market is doing it, then it's probably because money supply has been artificially increased.

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SocialAnchovy@reddit

If only our wages were artificially increased too 🤠

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not_today_thank@reddit

In a lot of ways, especially towards the bottom of the wage scale, we artificially supress wages. All other things being equal, as government benefits increase people on average will accept relatively lower pay.

Does Walmart pay such low wages that it's workers need food stamps. Or are workers with food stamps more willing to work for lower wages? Probably a little bit of both actually.

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WaltKerman@reddit

Wages go up with inflation too actually. You can see they even spiked after Covid.

I was just reading a sign about a miner strike in Colorado where they demanded wages move from 3 to $4 a day.

In todays money that's equivalent to miners asking to be moved from 90$ a day to $120

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Beneficial-Two8129@reddit

I don't care about the total money supply; I care about what my money can buy. If prices spike, my money loses value, whether that's due to more money in circulation, money being circulated faster, or a reduction of real productive capacity. As a matter of fact, I don't want prices to fall due to increased production; I want increased production to increase the nominal wages of the workers and profits of the investors who contributed to that increased production.

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MxM111@reddit

Inflation can have multiple causes, not just printing money.

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Beezel_Pepperstack@reddit

Luckily for us, we get to experience both while the Fed and the Corporations point accusingly at each other while counting their money!

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WaltKerman@reddit

Are you suggesting corporations are working together to raise prices where monopolies don't exist?

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SocialAnchovy@reddit

gif

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Alternative_Past6751@reddit

CPI is basically the only measure of inflation that anyone has used in public discourse for nearly a century, which has helped mask 'true' inflation because productivity gains count as deflationary in that context. Further it would be basically impossible to measure actual inflation in the US nowadays as the mechanism by which money is created isn't minting coins or printing bills, it's by issuing/insuring debt, and the M3 has not been reported since 2006.

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upvote-button@reddit

Inflation is caused only by more money entering the system. However, if the cost of everything (including labor wages) inflation wouldn't change anything. The problem is that when inflation happens costs go up but wages for 90% of us stay the same. Thats greedy price gouging using the phenomenon of inflation to create wealth discrepancies

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Beneficial-Two8129@reddit

You're extremely naive if you believe inflation is always a monetary phenomenon. The worst cases of inflation were caused not by money printing, but by war destroying the means of production (money may have been printed to help pay for the war, but the real problem was that factories were destroyed and workers killed).

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upvote-button@reddit

Yeah because that's totally relevant today. Dude, don't ne that guy, no one likes him and he isn't right in a way that makes a difference or is at all meaningful

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HotFoxedbuns@reddit

Von Mises explains the phenomenon of how printed money circulates into the economy very well. Some people make bank but most people get screwed

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jimmietwotanks26@reddit

I don’t remember if it was Mises, Hayek, or someone else, but they likened how this works to someone pouring honey on a large plate. I found it a helpful visual to understand it

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bodhiseppuku@reddit

... and this is why you should barter as much as you can. A little of my time, abilities or property, in trade for a little of yours. No need to get the taxman involved.

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karsnic@reddit

I get downvoted and called an idiot in the stock market subs for pointing out that the M2 money supply directly correlates with stock markets and that’s why it won’t be going down much anytime soon. Everyone thinks the market will crash to zero right now and don’t understand how many trillions of dollars are sitting on the sidelines wanting to be put to work.

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matt05891@reddit

I say this all the time.

People don’t like their money doing nothing and it’s not like we saw it poured into something else. It’s waiting to be re-injected with little intention of waiting long.

Money under the pillow is always worse than almost anything.

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Sad_Run_9798@reddit

What’s an M2 money supply ?

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DerpDerper909@reddit

I want one of these magic computers that can print money. Imma join the fed and give money to all of this sub!