Posted on 06/06/2021 6:23:07 PM PDT by Pining_4_TX
Suppose you lent someone $100, and when they paid you back they only handed you, say, $99 or $80. Would you consider the borrower to have kept his promise and contractual obligation? Or would you think that he had cheated you out of a part of the money you had lent him in good faith? Well, there are those who say that doing so is just fine, if it’s done through price inflation so the borrower repays the lender in depreciated dollars.
Binyamin Appelbaum, who makes this argument, is the lead writer for The New York Times on financial and economic affairs. He approaches economic and social policy issues from a consciously “progressive” perspective on the regulatory role and redistributive responsibility of the U.S. federal government. Indeed, he is so “progressive” in his thinking that in a recent article on the opinion page of The New York Times, Mr. Appelbaum made it clear that he considers FDR’s New Deal to be, well, almost socially “reactionary.”
The New Deal was enlightened government reform by men in government for men out of government, and designed to make it easier for the “little woman” to stay at home rather than enter the world of “man’s” work. Equally “backwards,” Roosevelt’s policies did not mandate that the private sector had to provide paid family leave or paid sick leave. How “unprogressive” for Roosevelt to presume to leave such questions and issues to the people themselves, based on marketplace voluntary association and agreement.
(Excerpt) Read more at aier.org ...
The reason Ol’ Janet Yeller is saying “inflation is a good thing” (sic) is that she wants us, US, to be further enslaved. Inflation = less money to escape the Rulers…
We just buy less, do without and make work with what we got. It’s not a big deal.
Janet plans on inflating the US dollar to oblivion, but she can’t inflate Bitcoin to oblivion.
Just saying.
Say you give everyone a raise to $15. Then every product on the market doubles in price? Do you feel good about people now making a living wage?
Calvin Coolidge put down the post-WW1 recession in less than a year.
Ten years later Hoover’s and FDR’s “progressives” turned the 1929 recession into ten years of misery, followed by WW2 which might have been avoided if the world economy hadn’t stayed tanked.
Hoover, FDR and Keynes are perhaps the worst thing that ever happened to Western Civilization.
It's actually worse than that. Whenever you raise the minimum wage, it has a cascading effect, as other more experienced workers will need raises too in order to keep their place in the pecking order.
Example, say you raise the minimum wage from $8/hr (or whatever it is these days) to $15/hr. That means all those who were already making $15/hr or more will need raises too otherwise they will be quite disgruntled to find all the newbie workers making just as much as them at the entry level!
Of course, that will raise the prices of just about everything and all those who are now making the new $15/hr minimum will still be struggling at the bottom of the wage ladder.
I actually have had that happen. Takes a person a few years to get up to a wage and then the new guy comes in and the wage is the same. Of course some unions mandate the wage raise for everyone so the employer suffers and the business closes down.
” people now making a living wage?”
A moving target with inflation. What is the living wage in Venezuela? Zimbabwe? Weimar Republic?
But then, with inflationary pressures building up, how is it that 30 year mortgages are still under 3%? Why would anyone lend money, even for a secured asset such as housing, at such low rates, for such a long period of time?
Jimmy Carter redux
You could teach a parrot to shriek "Supply and Demand. Supply and Demand." and it would know more economic theory than anyone at the NYT.
>> Whenever you raise the minimum wage, it has a cascading effect, as other more experienced workers will need raises too in order to keep their place in the pecking order.
That’s old economy thinking. The Progs know that their “frenemies” the capitalists won’t increase worker pay a dime as the unskilled gets their govt mandated raises. The minimum increases will continue until all labor decides to go on the dole. Then you have back door communism and after that, the Commies will decide that they own the labor since they pay them and they will rent the workers out to their frenemies.
Re: 5 - One of the client sites (K-12) that we support has lost several cleaners due to higher wages elsewhere. As the client is a public entity they are bound by wage scales outlined in the contract with the cleaning staff. Between the people leaving and a couple of cleaners out hurt, they are in a situation where they won’t be able to clean several areas of the building. Would not be surprised if they attempt to use a cleaning company, but they have not had good success with those in recent years at some of their other school buildings.
And she can't say that that one ounce gold or silver coin you hold in your hand now weighs only a half ounce.
Apportion some of your savings/investments into those metals and put 'em beyond the reach of the government.
Keep in mind that the lenders are getting most of their interest up front due to how mortgages are structured. The first few years, the lenders are collecting almost nothing but interest with nearly the entire principal still owed by the borrower.
Typically it's around 10 years into a 30 year mortgage before principal equals the interest on the monthly payment! By then, many people have re-financed or purchased another home, starting the cycle all over again.
This is why you have a bunch of 60 year olds approaching retirement with huge mortgages. They just spent most of their lives paying interest to the banks!
Inflation significantly hurts folks with lower incomes and retired seniors.
“one ounce gold or silver coin”
Worth faking now. beware.
Then they need to do what I do. It’s not complex.
Everyone is a millionaire in Zimbabwe
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